Alamos Minerals Ltd. and National Gold Corporation Arrange Debt Financing for Salamandra Purchase.Business Editors VANCOUVER, British Columbia--(BUSINESS WIRE)--Jan. 23, 2003 In advance of an Extraordinary General Meeting seeking shareholders' approval to amalgamate the two companies, Alamos The name Álamos can refer to the following:
TSX Transfer from Stack Pointer to Index TSX True Space Extension VENTURE:AAS) ("Alamos") and National Gold Corporation (TSX VENTURE:NGT NGT Night NGT National Grid Transco (UK gas transporter) NGT Nominal Group Technique NGT Not Greater Than NGT Next Generation Technology NGT Next Generation Telecom (China) NGT NASA Ground Terminal ) ("National") announce they have arranged financing with H. Morgan & Company to prepay the outstanding debentures issued by National and held by Tenedoramex, S.A. de C.V. and Kennecott Minerals Company in connection with the purchase of the Salamandra Gold Property. Prior to completion of their merger, Alamos is the entity obtaining the loan and National, as registered holder of the claims, is the guarantor of the loan. Under the terms of the December 2000 Asset Purchase Agreement, Alamos and National owe the vendors of Salamandra $7.5 million of the original $10.5 million purchase price. Payment of the $7.5 million outstanding can be rendered due 60 days after October 31, 2004, if the nine months trailing average price of gold exceeds $325 per ounce. Pre-paying the outstanding amount prior to January 31, 2003 reduces the amount due to $5.6 million, a reduction of $1.9 million dollars. The loan agreement allows Alamos to borrow up to US $4 million (approximately $6 million Canadian) with a term of 61 months to the maturity date. The loan can be repaid in full anytime after 24 months, and up to 50% of the total amount can be paid at anytime upon 30 days written notice. The rate of interest on the loan is 12% per annum Per annum Yearly. compounded monthly, not in advance. Repayment terms require the company to pay the interest only, monthly in arrears Adv. 1. in arrears - in debt; "he fell behind with his mortgage payments"; "a month behind in the rent"; "a company that has been run behindhand for years"; "in arrears with their utility bills" behindhand, behind on the outstanding balance; the principal is due in full on the maturity date. The loan is subject to regulatory approval. The Salamandra Property has seen US $30 million in development and was the subject of a feasibility study "A Feasibility Study" is an episode of the original The Outer Limits television show. It first aired on 13 April, 1964, during the first season. It was remade in 1997 as part of the revived The Outer Limits series with a minor title change. to mine 2.2 million ounces of gold in the Mulatos Deposit. At the time the study was completed the project economics were marginal with gold at less than $300 per ounce. A scoping study completed by Pincock, Allen and Holt (PAH PAH, PAHA aminohippuric acid. PAH abbr. para-aminohippuric acid PAH 1 Polycyclic aromatic hydrocarbon, see there 2. Pulmonary artery HTN ) in September 2002 focused on a higher grade portion of the deposit know as the Estrella Zone containing 1.8 million ounces of gold. PAH concluded that with a gold price of $300 per ounce the Estrella Zone could be mined profitably and generate an Internal Rate of Return of 19.3%. The project is currently the subject of an engineering evaluation to determine the effect of higher gold prices on future development plans. ON BEHALF OF THE BOARDS OF DIRECTORS OF: ALAMOS MINERALS LTD. Chester F. Millar, Chairman, President & CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. NATIONAL GOLD CORPORATION James M. McDonald, President The TSX Venture Exchange TSX Venture Exchange Originally called the Canadian Venture Exchange (CDNX), this was a result of the merger of the Vancouver and Alberta stock exchanges. The goal of TSX Venture Exchange is to provide venture companies with effective access to capital while protecting investors. has not reviewed and does not take responsibility for the adequacy or accuracy of this release. |
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