Nuinsco Announces Restructuring of Bridge Loanadmin
Nuinsco Resources Limited announced that it has entered into an oral agreement with its bridge loan lenders to extend the maturity date on the Company’s US$5 million bridge loan which was due and payable on December 15, 2008.
As part of the agreement to extend the maturity date to June 15, 2009, the Company will increase the existing security, which is restricted to the Company’s shares of Victory Nickel Inc., to include the Cameron Lake gold deposit and its shares in Gold Hawk Resources Inc. The Lenders will be paid an extension fee of 10,000,000 common shares of the Company. The Company has the right to prepay the facility in whole or in part, at any time.
“We are pleased to have the support of our lenders in this trying time. This vote of confidence recognizes the value of the Company’s underlying assets,” said Alison Sutcliffe, Vice-President, Finance and CFO of Nuinsco. “This extension provides the time for the Company to find more appropriate means to repay the debt.”
The terms of the extension of the bridge loan, including the issuance of common shares, are subject to documentation and regulatory approvals including approval of the Toronto Stock Exchange.