marcos, news looks good on your pick GEO-t:
Geomaque Announces Significant Progress on Financial Restructuring
TSE Symbol: GEO
(Amounts quoted in US dollars)
TORONTO, Oct. 12 /CNW/ - Geomaque Explorations Ltd. (the "Company") is
pleased to announce that it has made an arrangement with its principal lender,
Resource Capital Fund II L.P. ("RCF") and certain creditors whereby a total of
$2,922,000 of debt owing to these creditors has been eliminated by the payment
to these creditors of $825,000 and the provision of certain other
consideration. The Company obtained the $825,000 as a result of the exercise
by these creditors of the outstanding Warrant B, originally issued to RCF in
connection with its financing of the Company. As part of the arrangement, RCF
transferred Warrant B to these creditors. The exercise of the warrant resulted
in the issuance to these creditors of a total of 17,471,556 common shares.
- Butler Machinery Co. ("Butler") provided construction equipment to
Geomaque de Mexico S.A. de C.V. ("Geomaque Mexico") for use at Geomaque
Mexico's San Francisco Mine in Mexico. As full settlement for
outstanding amounts invoiced by Butler totalling $2,297,000, Butler has
agreed to take payment of US$500,000 plus the proceeds in excess of
$500,000 from the sale of certain equipment at the San Francisco Mine.
Butler was also given contingent rights, first, to any royalty that may
arise on the sale of the equipment and, second, a 1% NSR on any future
gold production from the unmined resources in the main pit. No present
value has been ascribed to these rights. Butler paid $500,000 on the
exercise of part of Warrant B and received, pursuant to the terms of
the warrant, 10,597,943 common shares of the Company. As a result,
Butler currently owns approximately 14% of the 75,960,637 common shares
now outstanding. Butler may increase or decrease its interest in the
Company as market circumstances dictate.
- Sococo de Costa Rica, S.A. ("Sococo") provides contract mining services
to Geomaque de Honduras, S.A. d C.V. ("Geomaque Honduras") at Geomaque
Honduras' Vueltas del Rio mine in Honduras. Geomaque Honduras currently
owes Sococo approximately $2,000,000. As settlement of $600,000 of this
amount, Sococo has agreed to take payment of $300,000 and, the Company
has agreed on an arrangement for the payment of the remaining amounts
owing over a period of time. Sococo paid $300,000 on the exercise of
part of Warrant B and received, pursuant to the terms of the warrant,
6,344,874 common shares.
- Haywood Securities Inc. ("Haywood") is the Company's financial advisor
and is providing advice to the Company in respect of its financial
restructuring. The Company has agreed to apply the $25,000 received
from Haywood on the exercise of a part of Warrant B to reduce fees
owing to Haywood by that amount. Haywood received 528,739 common shares
pursuant to the terms of the warrant. |
