Lumina Gold Corp (TSX-V:LUM, OTCQX:LMGDF) has said it is proposing to amend its unsecured credit facility with the company's largest shareholder, Ross Beaty, from $10.0 million to $15.0 million and extend the term from July 5, 2023, to December 31, 2023.
The additional proceeds will be used for remaining prefeasibility study costs and general corporate and working capital purposes. The current outstanding balance on the facility is $10.0 million (plus accrued interest).
The facility will mature on the earlier of: (i) December 31, 2023; (ii) two business days after the company receives aggregate gross proceeds from one or more equity financings in excess of $18.0 million; or (iii) the date of a change of control of the company, at which time it must be repaid in full.
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Subject to the acceptance of the TSX Venture Exchange, the principal amount of any loans outstanding under the facility, together with any and all unpaid interest accrued thereon as at the effective date of the amendments, shall be fully convertible into common shares of the company at a price of 42 cents per share at the option of the lender.
Interest on the funds advanced under the facility remains at a rate of 10.0% per annum. No additional bonus warrants will be granted in connection with the amendments.
Any common shares issued under the conversion right shall be subject to a hold period of four months and one day from the date that the corresponding principal amount was loaned to the company.
All of the terms and conditions of the facility were reviewed and unanimously approved by the board of directors of the company on December 13, 2022.
Lumina Gold, based in Vancouver, Canada, is a precious and base metal exploration and development company focused on the Cangrejos gold-copper project located in El Oro province, southwest Ecuador.
Cangrejos is being advanced to a prefeasibility study and is the largest primary gold deposit in Ecuador. Lumina has an experienced management team with a successful record of advancing and monetizing exploration projects.
Contact the author at jon.hopkins@proactiveinvestors.com