TORONTO, ONTARIO--(Marketwired - Oct 1, 2014) - Sage Gold Inc. ("Sage" or the "Company") (TSX VENTURE:SGX) has entered into an amendment agreement (the "Amendment Agreement") relating to its senior secured term debt facility (the "Facility") with Waterton Global Value, L.P. ("Waterton"). In the Amendment Agreement, Waterton agrees to extend the Facility's maturity date from October 3, 2014 to October 15, 2015 (the "Maturity Date").
The total amount outstanding under the Facility is approximately CAD$1.82 million inclusive of principal, accrued interest and fees payable to date. The annual interest rate of the Facility is 12%, and payment of accrued and future interest and fees shall be deferred until the Maturity Date.
Commencing on September 30, 2014 and continuing until such time as the Facility has been repaid in full, Waterton shall have the option (the "Conversion Option"), exercisable in its sole and absolute discretion, to acquire the Company's Lynx property in consideration for the full extinguishment of Sage's payment obligations under the Facility, the termination of this Facility, and Waterton's release of the security over the Company's assets. Sage's Lynx property, located in the Beardmore-Geraldton Gold Camp has a NI43-101 copper / gold / silver resource.
Sage's President and CEO, Nigel Lees, commented, "We appreciate the support that Waterton has shown in extending the maturity of this credit facility, providing Sage with additional time to execute its previously announced strategy of selective joint ventures / asset sales and / or equity financings to improve the Company's financial position in these challenging market conditions and place the Company in a strong position for the future."
Sage is a mineral exploration and development company which has primary interests in near-term production and exploration properties in Ontario. Its main properties are the Clavos Gold property in Timmins and the Lynx property and other exploration properties in the Beardmore-Geraldton Gold Camp. Technical reports and information relating to the properties can be obtained from the System for Electronic Document Analysis and Retrieval (SEDAR) website at www.sedar.com and www.sagegoldinc.com.
This release was prepared by management of the Company who takes full responsibility for its contents. 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.
This news release contains certain "Forward-Looking Statements" within the meaning of Section 21E of the United States Securities Exchange Act of 1934, as amended and "Forward Looking Information" within the meaning of applicable Canadian securities legislation. Some forward looking statements and forward looking information contained in this release are forward-looking and, therefore, involve uncertainties or risks that could cause actual results to differ materially. Such forward-looking statements include comments regarding mining and milling operations, mineral resource statements and exploration program performance. Factors that could cause actual results to differ materially include metal price volatility, economic and political events affecting metal supply and demand, fluctuations in mineralization grade, geological, technical, mining or processing problems, exploration programs and future results of exploration programs, future profitability and production.