Mr. A
bumped into this on google - so passing it on ..
Roxmark Completes Refinancing of Debt to a Significant Shareholder
TORONTO, Aug. 2 /CNW/ - Roxmark Mines Limited (RMKL - CNQ) today announced the completion of refinancing of unsecured, non-interest-bearing loans in the amount of $812,049 to Stanley E. Malouf and to S.E. Malouf
Consulting Geologists Limited and Zinc Metal Corporation, companies controlled by Mr. Malouf and his family (including David Malouf, an officer and director of Roxmark).
The agreement provided for the immediate repayment of $250,000. The balance of $562,049 is secured by an interest-bearing (prime plus 2% per annum) five year renewable secured convertible debenture. All or part of the principal and interest, if any, outstanding under the debenture will be
convertible on or after the debenture's maturity date of August 1, 2011. The conversion price is $0.13 per common share, representing the closing price of Roxmark's common shares on August 1, 2006. Roxmark has the right to prepay the
outstanding indebtedness at any time during the term of the debenture and has the obligation to repay the same upon the occurrence of certain events.
This indebtedness was advanced by the lenders during the past several years to support Roxmark's development programs. Roxmark acknowledges the support and its contribution to the progress of our Company. As a result of this refinancing, Roxmark has been able to retain working capital to be used
for its operations. The refinancing was closed without Roxmark providing the twenty-one days' prior notice prescribed by National Instrument 61-501 because
negotiations were conducted over the last several months and the definitive terms of the refinancing were only finalized on August 1, 2006. The lenders required Roxmark to execute the refinancing agreement on an unconditional
basis upon completion of the negotiations. The disinterested directors of Roxmark have approved the transaction.
The Company is progressing with its current program of a 3,000 ton bulk sample from the Nortoba-Tyson molybdenum property.
About Roxmark
Roxmark Mines is a Canadian-based junior resource company involved in exploration and development of gold and molybdenum properties in the Geraldton-Beardmore area of Northern Ontario. These properties include the
Nortoba-Tyson molybdenum property, a fully-permitted gold and molybdenum processing plant, and six former highly productive gold mines which generated nearly two million ounces of gold from high grade ore. Existing infrastructure
above and below ground at these mines will provide important advantages in developing additional gold-bearing structures. Further information is available at www.roxmark.com.
newswire.ca
regards,
John McCarthy |
