William Resources reaches agreement with Terra Mining
William Resources Inc WIM
Shares issued 13,484,715 Feb 9 close $0.055
Wed 10 Feb 99 News Release
Mr. Stan Bharti reports
William Resources Inc. has entered into an agreement with its lenders under
certain loan facilities for Terra Mining AB, the owner of the Bjorkdal
operations in Sweden, pursuant to which the lenders will not seek repayment
of the outstanding debt of $31.1-million (U.S.) prior to Dec. 31, 1999, on
certain conditions. The agreement has been negotiated and entered into in
response to demand letters for payment of principal and interest under the
respective loan facilities. The agreement provides that the lenders will
assume control of Terra. In consideration, the lenders will release the
guarantees, provided by the company, of the obligations due under the loan
facilities.
During the period up to May 15, 1999, the lenders may not sell Terra or the
underlying assets unless the sale yields an amount sufficient to satisfy
the debt in full. Any sale during such period will be subject to a right of
first refusal on the part of the company that would require the company to
match the sale price and pay reasonable break up fees. Any residual
interest, if the sale occurs prior to Dec. 31, 1999, would be paid to the
company. The company may at any time repay the loans in full.
The decision was taken by the company after careful deliberation and taking
into consideration a number of factors, including Terra's immediate cash
requirements and the advantages of obtaining releases while maintaining
residual interests in the companies and assets. The lenders, in assuming
operational control, will be responsible for the cash requirements and the
company understands that they will advance at least $1-million (U.S.) to
meet Terra's immediate needs and may defer interest payments.
The company is continuing negotiations with the lenders to the Jacobina
operations and expects to reach an agreement with the lenders relating to
the company's obligations under this facility. |
