Trading Symbol: TSXV: IG
CALGARY, Nov. 28, 2014 /CNW/ - Infinito Gold Ltd. (the
"Company" or "Infinito") announces that it has accepted an offer of
a demand loan facility for $250,000
(the "Loan") from Exploram Enterprises Ltd. ("Exploram"), its major
shareholder, and that all of the $250,000 has been advanced to the Company. The
closing occurred promptly upon acceptance of the offer by
Infinito.
The indebtedness under the Loan is to be secured under the
existing General Security Agreement, as amended, between the
Company and Exploram delivered in connection with the sale of
convertible notes of the Company on February
10, 2009 (the "Prior Notes"). The Loan is non-interest
bearing.
The Loan is in addition to $18.5
million of principal in other demand loans (the "Other
Demand Loans") that are also payable to Exploram, and is in
addition to $50.5 million in
principal owed under the Prior Notes.
All indebtedness under the Loan is repayable on demand at any
time and may be prepaid in whole or in part without penalty. In
addition, all indebtedness under the Loan shall rank equally with
the Other Demand Loans and senior to all other indebtedness of the
Company. There are no structuring fees to be paid by the Company in
conjunction with the Loan.
The funds advanced under the Loan are expected to satisfy the
Company's immediate working capital requirements into January 2015 as the Company continues to pursue
its arbitration claim against the Government of the Republic of
Costa Rica (see news release dated
February 10, 2014), and as disclosed
in its condensed consolidated interim financial statements dated
September 30, 2014 and its audited
consolidated financial statements dated March 31, 2014, both of which are available on
SEDAR (www.sedar.com).
The Company will continue to work with its major shareholder,
Exploram, to secure funding on a short-term basis, as required, to
be used to finance the Company's short-term working capital
requirements. Any such further funding is at the sole discretion of
Exploram.
Caution Regarding Forward-Looking Information and
Statements
Certain statements in this press release address future events
and conditions and, as such, involve known and unknown risks,
uncertainties and other factors which may cause the actual results,
performance or achievements to be materially different from any
future results, performance or achievements expressed or implied by
the statements. These factors include, among others, the extent of
the Company's working capital requirements; the Company's ability
to access further short-term financing; developments, if any, in
relation to the arbitration claim against the Government of the
Republic of Costa Rica; and the
timing and nature of further legal action, if any, in Costa Rica. These statements are made as of
the date of this release but Company undertakes no obligation to
update these forward-looking information or statements if
circumstances or management's estimates or opinions should change.
The reader is cautioned not to place undue reliance on
forward-looking information or statements.
INFINITO GOLD LTD.
John
Morgan
President
Neither the TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
SOURCE Infinito Gold Ltd.