Laramide extends term loan agreement
JOHANNESBURG (miningweekly.com) – Canadian uranium project developer Laramide Resources and its lenders, Extract Capital Master Fund and Extract Lending, have agreed to extend the maturity date of a previously issued C$5-million term loan issued in favour of Laramide to July 1, 2018.
"This term loan extension, combined with the distribution of cash that Laramide will receive from Khan Resources in November, will strengthen Laramide's financial options as we continue [the company’s] strategy of growing a portfolio of lower-technical-risk, low-cost uranium projects in stable political environments in anticipation of improving uranium markets," says CEO Marc Henderson.
The term loan extension is expected to be effective by no later than November 30, and remains subject to customary conditions, including TSX and ASX approvals.
Laramide has agreed to pay extension fees to extract equal to 2% of the principal amount of the term loan outstanding on the closing date, and to issue 1.2-million warrants, with an exercise price to be equal to the volume weighted average share price of the company's common shares over the ten trading days immediately following the date of execution of the binding term sheet, plus 50%.
The warrants will be exercisable for one common share of the company for a period of five years from the closing date.
Meanwhile, Laramide has also entered into an amendment letter to extend its previously announced agreement with Uranium Resources Incorporated (URI) – to acquire URI's Churchrock and Crownpoint properties in New Mexico – to November 30.
As consideration for the extension, a payment of $250 000 in cash payable to URI is due on or before October 21, which will be treated as a prepayment of the purchase price once the transaction closes.
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