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Noteholders Waive Defaults Arising From Delay of Decision in Costa Rican Court Proceedings
Publié le 01 octobre 2009
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Infinito Noteholders Waive Defaults Arising From Delay of
Decision in Costa Rican Court Proceedings
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Infinito Gold Ltd. (the "Company") announces that it has received
waivers of events of default under the outstanding $50,500,000 Secured
Convertible Notes (the "Notes") of the Company held by Exploram
Enterprises Ltd. ("Exploram") and Auro Investments Ltd. ("Auro", and
together with Exploram, the "Noteholders").
When the Notes were issued, the Company and the Noteholders expected
the current Costa Rican legal challenge to the grant of a change of
land use permit for the Crucitas mine before the SALA IV in Costa Rica
would be resolved in time to permit the Company to complete the
drawdown of funds under a project debt financing facility to finance
commencement of construction at the Crucitas project by September 30,
2009. Consistent with this view, the Notes provided that it would be
an Event of Default if the Sala IV proceedings had not been resolved
favourably by June 30, 2009 and if the first drawdown under a project
debt financing facility did not occur by September 30, 2009 and the
first interest payment due under the Notes was payable on September 30,
2009.
As the court proceedings have not been resolved, the Company has not
completed a drawdown under a project debt financing facility and does
not have the funds to fund payment of interest due on September 30,
2009. The Noteholders have granted the Company a waiver of the events
of default associated with its non-compliance with each of these
provisions until October 30, 2009. In addition, structuring fees of
$510,000 payable to the Noteholders were due on September 30, 2009, and
the Noteholders have agreed to defer payment of these fees by the
Company (and waived the defaults related to non-payment) until October
30, 2009. These waivers represent the fourth time since June 30, 2009
the Noteholders have waived events of default relating to the delay in
receipt of a decision by the SALA IV, each previous waiver having been
given for a period of approximately one month.
Exploram is the controlling shareholder of the Company and Auro is a
company associated with Steven Dean, the Company's Chairman.
Caution Regarding Forward-Looking Information and Statements
Certain statements in this press release address future events and
conditions and, as such, involve known and unknown risks, uncertainties
and other factors which may cause the actual results, performance or
achievements to be materially different from any future results,
performance or achievements expressed or implied by the statements.
These factors include, among others, the inherent risks involved in the
exploration and development of mineral properties, the uncertainties
involved in interpreting drilling results and other geological data,
fluctuating metal prices, the possibility of project cost overruns or
unanticipated costs and expenses, uncertainties relating to the
availability and costs of financing needed in the future, the
possibility that all necessary governmental and regulatory approvals
will not be received, and the availability of a qualified workforce and
third party contractors necessary for the development and operation of
a mine. The Company undertakes no obligation to update these
forward-looking information or statements if circumstances or
management's estimates or opinions should change. The reader is
cautioned not to place undue reliance on forward-looking information or
statements.
INFINITO GOLD LTD.
John Morgan
President
"The TSX Venture Exchange does not accept responsibility for the
adequacy or accuracy of this release."
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Copyright (c) 2009 INFINITO GOLD LTD. (IG) All rights reserved. For
more information visit our website at http://www.infinitogold.com/ or
send mailto:info@infinitogold.com
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