Maya Gold & Silver: Financial Update
BLAINVILLE, QUEBEC--(Marketwired - May 8, 2015) - Maya Gold & Silver Inc. ("Maya" or the "Corporation") (TSX VENTURE:MYA) is pleased to announce that it has entered into an agreement amending the credit facilities made available to it by a fund managed by Scipion Capital Ltd.
Credit facility
On January 30th 2014, Maya was pleased to announce that it had entered into a facility agreement with Scipion Active Trading Fund, a company managed by Scipion Capital Ltd., for a finance facility in a principal amount of USD6.0 million, of which USD 3.5 million was immediately available. The initial facility was a 12-month loan maturing on January 31, 2015 with interest bearing at 12%, and was repayable in 9 consecutive monthly instalments beginning on May 31, 2014 from the cash generated by the operations of Zgounder Silver Mine. As of today, USD 2,371,907 has been reimbursed from the cash generated by the Zgounder mining operations.
Maya is pleased to announce that, pursuant to an amendment to the facility agreement, the Corporation and the lender have agreed to postpone the maturity date of the credit facility to October 30, 2015. The outstanding balance of the credit facility remaining will be payable in consecutive monthly installments until maturity. The extension of the credit facility is to provide financial flexibility to further advance Zgounder underground development. The conditions remain the same as previous agreement (MYA press release dated January 30, 2014). The Corporation has further agreed to pay a cash fee equal to USD 45,000.
Maya also agreed to amend the terms of the option to convert any amounts due under the facility into a maximum of 1,500,000 common shares of Maya, at a price of CAD 0.35 per share by extending the conversion period from January 31, 2015 to October 30, 2015.
Furthermore, pursuant to an amendment to the facility agreement, it has been agreed to increase the credit facility by an amount of USD 131,250 in principal. The increase has been granted to allow the Corporation to purchase and pay the premium under a risk management package in respect of a commodity purchased by Maya.
The amendment of the facility agreement is subject to approval of the TSX Venture Exchange.
Party Transactions
The Corporation issued in lieu of bonus payments a total of 1,566,666 units to a director as part of two private placements previously announced by the Corporation. The first private placement was completed in March, 2011 by the issuance of 666,666 units at CAD 0.45 per unit (consisting of one common share and one common share purchase warrant of Maya). The second placement was completed in April 5, by the issuance of 900,000 units at a price of CAD 0.233 per unit (consisting of one common share and one-half of one common share purchase warrant of Maya), see related news releases issued on March 21, 2011 and April 5, 2012.
These payments of bonuses should had been treated as share for debt transactions instead of private placements.
The final approval of the TSX Venture Exchange for the issuance of the 1,566,666 common shares to a director is subject to the approval of the disinterested shareholders of the Corporation at the next meeting of shareholders. All of the 1,566,666 Common Shares have been deposit in escrow until receiving the final approval.
ABOUT MAYA
Maya Gold & Silver Inc. is a Canadian listed mining corporation focused on the exploration and development of gold and silver deposits in Morocco. Maya is initiating mining and milling operations at its Zgounder Mine. Zgounder Millenium Silver Mining ("ZMSM"), the 85% owned joint venture with l'Office National des Hydrocarbures et des Mines ("ONHYM") of the Kingdom of Morocco (15%).
For further information on Maya, visit www.mayagoldsilver.com.
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 INFORMATION
Certain statements in the foregoing may constitute forward-looking statements, which involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of Maya, or industry results, to be materially different from any future result, performance or achievement expressed or implied by such forward-looking statements. These statements reflect management's current expectations regarding future events and operating performance as of the date of this news release. No representation, warranty or undertaking, express or implied, is given as to the accuracy or completeness of the information contained in this document by any Scipion Capital Ltd its members, employees or affiliates and no liability is accepted by such persons for the accuracy or completeness of any such information or opinions.
Contact
Maya Gold & Silver Inc.
Guy Goulet
Chief Executive Officer
450-435-0700 ext. 204
ggoulet@mayagoldsilver.com
Nathalie Dion
Investor Relations
450-435-0700 ext. 202
ndion@mayagoldsilver.com