Infinito Gold defaults waived on convertibles held by Exploram, Auro

By Caroline Salls

Pittsburgh, Oct. 1 - Infinito Gold Ltd. has received waivers of events of default under its C$50.5 million secured convertible notes held by controlling shareholder Exploram Enterprises Ltd. and Auro Investments Ltd., a company associated with chairman Steven Dean, according to a company news release.

According to the release, when the notes were issued, the company and the noteholders expected a current Costa Rican legal challenge to the grant of a change-of-land-use permit for the Crucitas mine would be resolved in time to allow Infinito to complete the drawdown of funds under a project debt financing facility to finance construction at its Crucitas project by Sept. 30.

Consistent with this view, the company said it would have been in default on the notes if the Crucitas challenge was not resolved favorably by June 30 and if the first drawdown under the project debt financing facility did not occur by Sept. 30.

Infinito said it was also required to make the first interest payment on the notes on Sept. 30.

Because the proceedings have not been resolved, the company said it has not completed a drawdown and does not have the funds to make the interest payment.

The noteholders have granted the company a waiver of the events of default related to the non-compliance with each provision until Oct. 30.

In addition, the noteholders have agreed to defer payment of C$51,000 in structuring fees due Sept. 30 until Oct. 30.

Infinito Gold is a Calgary, Alta., advanced gold exploration company.

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