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Infinito again gets waivers stemming from Costa Rican decision delay
By Jennifer Chiou
New York, Jan. 7 - Infinito Gold Ltd. said it once again received waivers for events of default on its C$50.5 million of secured convertible notes held by controlling shareholder Exploram Enterprises Ltd. and Auro Investments Ltd., a company associated with chairman Steven Dean.
The noteholders granted the company a waiver of the events of default until Feb. 17, extended from Jan. 8.
In addition, some structuring fees have been deferred until Feb. 17.
These waivers represent the sixth time since June 30, 2009 that the noteholders have waived events of default relating to the delay in receipt of a decision by the SALA IV, according to the company's most recent press release on the defaults. Each previous waiver was given for a period of about one month.
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 before the SALA IV in Costa Rica 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 had said it would have been in default on the notes if the SALA IV proceedings had not been resolved favorably by June 30, 2009 and if the first drawdown under the project debt financing facility did not occur by Sept. 30.
Infinito previously said it was also required to make the first interest payment on the notes on Sept. 30.
Because the proceedings had not been resolved, the company said it had yet to complete a drawdown and does not have the funds to make the interest payment that was due on Sept. 30.
Infinito Gold is a Calgary, Alta., advanced gold exploration company.
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