Corvus Gold Inc. has entered into a US$20 million loan agreement with AngloGold Ashanti North America Inc. to fund the ongoing permitting and pre-development work at the North Bullfrog project, as well as ongoing exploration at Covus’ Mother Lode and Lynnda Strip projects.
Highlights of the US$20 million unsecured loan agreement include:
- A fixed interest rate of 1.10725% with interest beginning 180 days after loan signing.
- Repayment of the loan will be the lesser of 12 months after loan origination date, or after all North Bullfrog project mine construction permits are obtained by Corvus.
- A minimum of 70% of the loan amount to be spent on project work.
- AngloGold is granted an exclusivity period of 90 days where Corvus will abstain from all discussions or actions related to material transactions involving company assets or changes in share structure.
The loan constitutes a ‘related party transaction’ under Multilateral Instrument 61-101 -- Protection of Minority Security Holders in Special Transactions (MI 61-101) as AngloGold is a related party of Corvus given its greater than 10% beneficial shareholding. Pursuant to Section 5.7(1)(f) of MI 61-101, the company is exempt from obtaining minority approval of the company’s shareholders in respect of the loan because it was determined that the loan is on reasonable commercial terms that are not less advantageous to the company than if the loan was obtained from a person dealing at arm’s length with the company, and because the loan is not convertible into, or repayable in, equity or voting securities of the company or a subsidiary of the company or otherwise participating in nature.
The company will file a material change report in respect of the loan. However, the material change report will be filed less than 21 days prior to the closing of the loan, which is consistent with market practice and which the company deems reasonable in the circumstances.
The transaction remains subject to TSX acceptance.
Read the article online at: https://www.globalminingreview.com/mining/10052021/anglogold-ashanti-agrees-to-fund-corvus-golds-north-bullfrog-project/
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