JOHANNESBURG (miningweekly.com) – Liberty Metals and Mining (LMM) and Platinum Group Metals (PTM) have agreed to amended credit terms for an existing secured loan facility.
The amended terms include an agreement that PTM must raise a minimum of $20-million in subordinated debt and/or equity before May 15.
In addition, provided that the company applies the first $20-million of net proceeds from the first required financing to reduce indebtedness under the LMM facility before May 15, PTM is not otherwise in default under the LMM facility should a previously required second financing to raise a further $20-million in subordinated debt and/or equity before July 31 be eliminated.
The LMM facility maturity date will be extended to June 30, 2019, from the previous date of September 30, 2018, and interest will continue to accrue until the maturity date.
Further, PTM may elect to make further repayments toward the LMM facility if the first required financing exceeds the minimum requirement.
LMM will continue to be entitled to 50% of the proceeds from future equity offerings of the company greater than $500 000, and will also be entitled to 50% of the proceeds upon exercise of any warrants or other convertible securities issued by PTM.