In consideration of the extension, 217,918 bonus shares of Timmins Gold representing 2% of the principal amount of the loan were paid; and the bonus shares are subject to a four month hold period which expires on 5 November 2012.
Timmins Gold if fails to repay the loan by 5 July 2013, Sprott Resource will charge a fee of 1% of the loan amount outstanding on that date to be paid in common shares (anniversary shares)at the same price.
The anniversary shares will be subject to a four month hold period.
The 18 months amended credit agreement ends on 31 December 2013 and the company has to pay monthly installments calculated at a rate of 8% interest per annum.
The outstanding principal amount will be paid at the end of the term.
Timmins Gold is a commercial gold producer.
