White Tiger Announces Closing of Kirkland Loan Conversion
TORONTO, ONTARIO -- (Marketwire) -- 10/19/12 -- Further to its July 4, 2012 press release, White Tiger Gold Ltd. (the "Company") (TSX: WTG) announces that it has closed its proposed Loan Conversion (as defined below) with Kirkland Intertrade Corp. ("Kirkland"). Kirkland is a company beneficially owned, directly or indirectly, by Mr. Maxim Finskiy, the Executive Chairman, a director and the controlling shareholder of the Company.
The Company owed Kirkland the principal amount of USD$5.0 million (CDN$5,310,457.70, including accrued interest to October 19, 2012, and converted into Canadian dollars based on the Bank of Canada's noon rate of exchange of USD$1.00=CDN$0.9742 on September 18, 2012) (the "Kirkland Loans"), USD$4.0 million of which matured in May 2012 and bore interest at a rate of 15% per annum and USD$1.0 million of which matured in October 2012 and bore interest at a rate of 10% per annum.
On October 19, 2012, the Company and Kirkland entered into a debt settlement agreement (the "Debt Settlement Agreement") pursuant to which the parties agreed to settle the Kirkland Loans through the issuance of common shares of the Company (each, a "Common Share") at a price of CDN$0.10 per share (the "Loan Conversion"). Pursuant to the terms of the Debt Settlement Agreement, Kirkland accepted, in full and final satisfaction of the Kirkland Loans, 53,104,577 Common Shares.
In accordance with Section 604 of the Toronto Stock Exchange Company Manual, the Company sought and obtained shareholder approval for the Loan Conversion at a meeting of shareholders held on October 19, 2012. The Common Shares beneficially owned, directly or indirectly, by Mr. Finskiy, were excluded from voting at the meeting.
Following the closing of the Loan Conversion, Mr. Finskiy beneficially owns and/or exercises control or direction over 238,700,371 Common Shares. This represents approximately 50.09% of the issued and outstanding Common Shares on an undiluted basis.
About White Tiger
The Company is a TSX-listed mining and exploration company, focused on the development of mineral resources in the Russian Federation.
Contacts:
White Tiger Gold Ltd.
James McBurney
info@whitetigergold.com
www.whitetigergold.com