Cathedral Gold Corporation has Reached Agreement with Imperial Metals Corporation Re: Line of Credit.VANCOUVER, British Columbia--(BUSINESS WIRE)--April 29, 1999-- A committee of independent directors of Cathedral Gold Corporation (TSE See Tokyo Stock Exchange. TSE 1. See Tokyo Stock Exchange (TSE). 2. See Toronto Stock Exchange (TSE). :CAT) has reached agreement with Imperial Metals Corporation (TSE:IPM (1) (Impressions Per Minute) Generally refers to document scanners that scan both sides of the page at the same time. Thus, a scanner that scans at 100 ppm (pages per minute) can provide 200 ipm. See ppm and document scanner. ) concerning Cathedral's line of credit with Imperial. Imperial, which holds 39.5 percent of the common shares of Cathedral, called on Cathedral in January 1999 to repay all funds borrowed by Cathedral under its line of credit with Imperial. The borrowed funds are secured by Cathedral's 90 percent interest in the Sterling mine. The settlement agreement reduces the interest rate under the line of credit to US prime plus 1 percent and gives Cathedral the option, good to December 31, 1999, of paying amounts outstanding under its line of credit, to a maximum of US$1 million, by issuing 1 million common shares of Cathedral to Imperial and assigning as·sign tr.v. as·signed, as·sign·ing, as·signs 1. To set apart for a particular purpose; designate: assigned a day for the inspection. 2. to Imperial Cathedral's remaining working interest in the Sterling mine. The amount owing by Cathedral to Imperial under the line of credit as of March 31, 1999 was US$1,173,256. The settlement agreement also provides that Imperial, through a wholly owned subsidiary Wholly Owned Subsidiary A subsidiary whose parent company owns 100% of its common stock. Notes: In other words, the parent company owns the company outright and there are no minority owners. , will proceed with the next phase of reclamation Reclamation A claim for the right to return or the right to demand the return of a security that has been previously accepted as a result of bad delivery or other irregularities in the delivery and settlement process. and gold recovery operations Operations conducted to search for, locate, identify, rescue, and return personnel, sensitive equipment, or items critical to national security. at Sterling, which consists of turning the heaps and installing a water line to the mine site. Cathedral will not be required to pay for this phase of work, estimated to cost approximately US$430,000, and in return for this benefit Cathedral will assign a 40 percent joint venture interest in the Sterling Mine to Imperial, effective March 31, 1999, increasing Imperial's interest from 10 percent to 50 percent and decreasing Cathedral's interest from 90 percent to 50 percent. The arrangement remains subject to any regulatory approvals that may be required. The Sterling mine has been in production since 1980 as a high grade, low tonnage TONNAGE, mar. law. The capacity of a ship or vessel. 2. The act of congress of March 2, 1799, s. 64, 1 Story's L. U. S. 630, directs that to ascertain the tonnage of any ship or vessel, the surveyor, &c. operation. It has potential as an exploration target for a low grade high tonnage deposit, which is more typical of the Nevada geological setting. |
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