Dayton Reaches Agreement with Lenders.VANCOUVER, BRITISH COLUMBIA, Canada--(BUSINESS WIRE)--Jan. 11, 1999--Dayton Mining Corporation (AMEX AMEX See: American Stock Exchange , TSE See Tokyo Stock Exchange. TSE 1. See Tokyo Stock Exchange (TSE). 2. See Toronto Stock Exchange (TSE). :DAY) is pleased to announce that it has reached an agreement with its banks that will form the basis of a long-term solution to the financing of the Andacollo Gold Mine. The bank loan balance is currently US$17.9 million of which US$12.9 million is cash collateralized. The banks have agreed to Dayton's request to utilize US$10.9 million of the collateralized cash to pay the loan balance down to US$7 million, leaving cash collateral of US$2 million. After this paydown Dayton will have total cash of approximately US$9.5 million, or US$7.5 million net of the cash collateral. The quarterly repayments due in January 1999 and April 1999 will be reduced from US$3.6 million each to US$1 million each and the interest rate through April 19, 1999 will continue at the reduced rate of LIBOR LIBOR See: London Interbank Offered Rate LIBOR See London interbank offered rate (LIBOR). plus 1.25%. The banks have agreed to waive all existing defaults until April 19, 1999 at which time Dayton anticipates it will be in full compliance with all terms of the loan agreement. Bill Myckatyn, Chairman, President and 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. of Dayton stated "I am pleased with the resolution of these discussions with our banking syndicate. This agreement provides certainty going forward, reduces the costs of servicing the loan facility and permits management to concentrate its efforts on seeking other growth opportunities and further improving the operation. Gold production at the Andacollo Gold Mine was 11,058 ounces for the month of December, 30,558 ounces for the fourth quarter, and 92,548 ounces for 1998. Operating costs for the fourth quarter are being finalized." Dayton Mining Corporation holds a 100% interest in the Andacollo Gold Mine located in central Chile, and trades on both the American Stock Exchange American Stock Exchange (AMEX) Stock exchange in the U.S. Originally known as “the Curb,” it began as an outdoor marketplace in New York City c. 1850. It moved indoors to its present location in the Wall Street area in 1921. (AMEX) and Toronto Stock Exchange Toronto Stock Exchange (TSE) Canada's largest stock exchange, trading approximately 1,200 company stocks and 33 options. (TSE) under the trading symbol DAY. Notice: The Company relies on litigation An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute. When a person begins a civil lawsuit, the person enters into a process called litigation. protection for "forward looking" statements. |
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