Trading Symbol: TSX-V: IG
CALGARY, June 20, 2011 /CNW/ - Infinito Gold Ltd. (the "Company") announces that it has accepted an offer of a demand loan facility (the "Loan") for up to $3.0 million from Exploram Enterprises Ltd. ("Exploram"), its controlling shareholder.
The indebtedness under the Loan is to be secured under the existing General Security Agreement between the Company and Exploram delivered in connection with the sale of convertible notes of the Company on February 10, 2009 (the "Prior Notes"). Interest is payable on the outstanding balance of the Loan monthly in arrears at a rate of 19.0% per annum.
The Company has been advanced $750,000 pursuant to the Loan but subsequent advances are at the sole discretion of Exploram.
The Loan is in addition to $13.1 million of principal in other demand loans (other "Demand Loans") that are also payable to Exploram, and is in addition to $50.5 million in principal owed under the Prior Notes.
All indebtedness under the Loan is repayable on demand at any time and may be prepaid in whole or in part without penalty. In addition, all indebtedness under the Loan shall rank equally with the other Demand Loans and senior to all other indebtedness of the Company. There are no structuring fees to be paid by the Company in conjunction with the Loan. The closing occurred promptly upon acceptance of the offer of the Loan by Infinito as the funds were required urgently.
The Company advises that it continues to await the results of the request for annulment ("Casación") filed on January 18, 2011 by the Company's wholly owned subsidiary in Costa Rica, IISA, with the Administrative Law Chamber of the Supreme Court of Costa Rica, ("SALA I") against the ruling imposed by the Tribunal Contencioso Adminastrativo ("Tribunal") on November 24, 2010.
No inference should be drawn from the advance of the Loan that the SALA I proceedings will be resolved favourably.
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 timing and nature of the ruling from the SALA I, the timing and nature of any further information regarding the Tribunal, 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 and CEO
"Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy and accuracy of this release."