Amarillo Gold Corp.

Published : August 18th, 2014

Amarillo Gold Announces Gold-linked Credit Facility

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Keywords :   Brazil | Creditors | Debt | Equity Markets | Gold | Gold Loan | Lbma | Market |

Amarillo Gold Announces Gold-linked Credit Facility

VANCOUVER, BRITISH COLUMBIA--(Marketwired - Aug 18, 2014) - Amarillo Gold Corp. (TSX VENTURE:AGC) ("Amarillo" or the "Company") is pleased to announce that it has entered into a gold-linked credit facility (the "Facility"). The purpose of the Facility is to both finance the Company and to consolidate many of the Company's current obligations into a single structure with a repayment scheme that is consistent with a) its continuing development plans on its flagship Mara Rosa project and b) financing conditions in the junior gold equity markets. The creditors of the facility are shareholders of the Company.

Under the Facility, the Company can borrow up to the value of 5,000 ounces of gold. Two components of the facility are defined: An initial tranche of up to 2500 ounces of gold with a reference price of $1285.25/oz (the LBMA PM fix on July 31, 2014) and subsequent tranches, to be filled quarterly, with reference prices based on the LBMA PM fix seven business days prior to the start of the quarter. The subsequent quarterly tranches are to be limited to the value of 270 ounces as calculated from this reference gold price.

The Facility must be repaid on the earliest of: 1) A change of control of the Company; 2) Three months following a declaration of commercial production at Mara Rosa; and 3) July 31, 2019.

The Facility bears a coupon of 12% and interest may be accrued.

In partial consideration of the Facility, the Company will issued 1200 non-transferable common share purchase warrants (the "Warrants") to each Lender for each $1,000 in value advanced in the Initial Drawdown, and 600 Warrants to each Lender for each $1,000 in value advanced in subsequent drawdowns, with each Warrant entitling the holder thereof to acquire one common share in the capital of the Company. Each Warrant has an exercise price of $0.25, being equal to approximately 250% premium over the 20 day VWAP of the Company's common share price as at August 12, 2014. Each Warrant has an expiry date of 36 months from issuance. The Warrants and the common shares underlying the Warrants are subject to a four-month hold period pursuant to Canadian securities laws.

"This Facility consolidates and greatly extends the maturity of our debt. It also provides us with sufficient funding to pursue our goals for the foreseeable future. It does both these things without, apart from the very modest warrant issue, struck well above market, the issuance of equity. We are keenly focussed on preserving and enhancing underlying shareholder value and in this very high cost-of-capital environment for gold developers, we are pleased to have structured a financing mechanism that does not dilute our shareholders in any substantially material way." commented Buddy Doyle, CEO of Amarillo.

A similar facility is now being drafted for creditors of the Company who are also insiders of the Company. Terms are expected to be identical except for the initial gold reference price.

The gold loan and the issuance of the Warrants are subject to the customary final approval conditions of the TSX-V.

About Amarillo Gold Corp.

Amarillo Gold Corp. is focused on acquisition, discovery, and definition of gold resources in Brazil. The Company's principal projects are the Mara Rosa Project in the state of Goias, and the Lavras do Sul Project in the state of Rio Grande do Sul. The Posse Deposit at Mara Rosa contains 1,174,900 ounces of measured and indicated gold contained in 20.85 MT at 1.75 g/t Au, and 156,400 ounces of gold inferred from 3.63 MT at 1.38 g/t Au (0.5 g/t cut-off grade) (NI 43-101 compliant resource as independently determined by Australian Exploration Field Services Pty. AEFS). The Mara Rosa Gold Project has received a positive economic assessment from a Pre-feasibility study and is preparing to proceed to a bankable feasibility study.

The Posse Deposit was successfully mined by Western Mining Company (WMC) during the 1990s (mined areas are excluded from the above-stated resource figures), and is located in an area of excellent infrastructure: approximately 35 km NE of Yamana's Chapada open pit Cu-Au operation, some 80 km NE of Yamana's Pilar Au project (in Feasibility), 95 km NW of Votarintim's Niquelandia Ni laterite mine, 105 km from NE of Serra Grande's underground Au mine, and 105 km NNW of Anglo American's Ni laterite project at Barro Alto.

The Lavras do Sul Project is an advanced exploration stage property (190 sq. km.) comprising more than 19 prospects centred on historic gold workings, with encouraging gold mineralization discovered and defined by more than 16,000 metres of drilling. The initial resource estimate at the Butia prospect reported 215,000 ounces of gold indicated from 6.4 MT at 1.05 g/t Au, and 308,000 ounces of gold inferred from 12.9 MT at 0.74 g/t Au using a0.3 g/t cut-off grade in a NI 43-101 compliant resource as independently determined by Atticus Consulting 2010. Lavras do Sul is also located near excellent infrastructure. The Company also has a portfolio of earlier stage projects and all properties under Amarillo's management are located in areas of good infrastructure and mining-friendly communities.

ON BEHALF OF THE BOARD OF DIRECTORS
AMARILLO GOLD CORP.
Per: "Buddy Doyle"
Buddy Doyle, President

Neither 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 or accuracy of this release.

FORWARD LOOKING STATEMENTS:-

This news release contains Forward Looking Statements regarding our intentions and plans. Forward looking statements in this news release include that we will receive proceeds of a gold loan, that we will receive regulatory approval for the gold loan and its terms, and that our projects have potential for commercialization. Various factors may prevent or delay our plans, including but not limited to, the lenders not advancing funds as required, contractor availability and performance, weather, access, mineral prices and success and failure of the exploration and development carried out at various stages of the program. Permission from the Government and community is also required to proceed with future mining production. We may not be able to fulfill our obligations under the proposed gold loan and we may be unable to raise sufficient financing to carry out our plans. Readers should review risk factors applicable to junior mining exploration companies generally to understand the variety of risks that can affect the Company. The Company undertakes no obligation to update publicly or otherwise revise any forward-looking statements whether as a result of new information or future events or otherwise, except as may be required by law.

Read the rest of the article at finance.yahoo.com
Data and Statistics for these countries : Brazil | All
Gold and Silver Prices for these countries : Brazil | All

Amarillo Gold Corp.

EXPLORATION STAGE
CODE : AGC.V
ISIN : CA02301T1084
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Amarillo Gold is a gold exploration company based in Canada.

Amarillo Gold holds various exploration projects in Brazil.

Its main exploration properties are MARA ROSA, SAN ANTONIO, OUROLANDIA and LAVRAS DO SUL in Brazil.

Amarillo Gold is listed in Canada and in United States of America. Its market capitalisation is CA$ 19.7 millions as of today (US$ 15.9 millions, € 13.7 millions).

Its stock quote reached its highest recent level on December 24, 2010 at CA$ 1.90, and its lowest recent point on December 24, 2015 at CA$ 0.04.

Amarillo Gold has 80 250 000 shares outstanding.

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Annual reports of Amarillo Gold Corp.
2007 Annual Report
Financings of Amarillo Gold Corp.
4/14/2011ANNOUNCES $10 MILLION PRIVATE PLACEMENT
Option Grants of Amarillo Gold Corp.
7/18/2011Shareholders Approve Rights Plan; Company Grants Options
Project news of Amarillo Gold Corp.
4/29/2013(Mara Rosa)Mara Rosa Project: New Geotechnical Study Allows for Steeper...
10/11/2012(Mara Rosa)Receives Further Positive Metallurgical Results at the Mara ...
9/13/2011(Mara Rosa)Upgrades Mara Rosa Resource to Measured + Indicated 1.17 Mil...
6/29/2011(Mara Rosa)Reports Final 12 Definition Drill Holes at Mara Rosa Gold Pr...
4/8/2011(Mara Rosa)Completes Definition Drilling at Mara Rosa Gold Project
2/1/2011(Mara Rosa)Drills 35.7 m (True Width) of 2.67 g/t Au in First Results f...
5/28/2007Releases Drilling and Assaying Update from its Lavras do Sul...
Corporate news of Amarillo Gold Corp.
1/18/2016Public Hearing for the Environmental Permitting of the Posse...
1/18/2016Public Hearing for the Environmental Permitting of the Posse...
7/14/2015Amarillo Appoints Araõ Portugal to Expedite Permitting
7/14/2015Amarillo Appoints Arao Portugal to Expedite Permitting
10/8/2014Amarillo Gold Welcomes New Chief Financial Officer
8/18/2014Amarillo Gold Announces Gold-linked Credit Facility
7/15/2014Amarillo Gold Signs a Protocol With the State of Goias and t...
2/19/2013Drills 19 Metres at 2.47 g/t Au at Saddle Zone in Proposed P...
9/12/2012Closes Non-Brokered Private Placement for $4.1 Million in Pr...
9/19/2011Dale Mah comments on Amarillo Gold Corp. in Gold Report Inte...
9/9/2011Upcoming Conferences
6/17/2011Implements Shareholder Rights Plan
5/26/2011Follow Up (Mackie Research)
5/24/2011Receives Pre-Feasibility Metallurgical Report, Defining Gold...
5/4/2011Closes $10 Million Brokered Private Placement
4/29/2011Closes First Tranche of Brokered Private Placement for $8.4 ...
4/11/2011Buddy Doyle Leads Amarillo Gold - Northern Miner
3/3/2011Drills 17 Metres of 3.17 G/T Au in 2nd Round of Results From...
8/20/2008drills 88 m @ 1.83 g/t Au at Butiá, and 162m @ 0.70 g/t Au a...
4/17/2007Assay Results From Marifil'S Amarillo Norte Gold Property --...
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