Infinito Gold Ltd. Announces Additional Financing
Trading Symbol: TSX-V: IG
CALGARY,
Nov. 30, 2012 /CNW/ - Infinito Gold
Ltd. (the "Company" or "Infinito") announces that it has accepted
an offer of a demand loan facility for $250,000 (the "Loan") from Exploram Enterprises
Ltd. ("Exploram"), its major shareholder, and that all of the
$250,000 has been advanced to the
Company. The closing occurred promptly upon acceptance of
the offer by Infinito as the funds were required urgently.
The indebtedness under the Loan is to be secured
under the existing General Security Agreement between the Company
and Exploram delivered in connection with the sale of convertible
notes of the Company on February 10,
2009 (the "Prior Notes"). The Loan is non-interest
bearing.
The Loans are in addition to $18.6 million of principal in other demand loans
(other "Demand Loans") that are also payable to Exploram, and is in
addition to $50.5 million in
principal owed under the Prior Notes.
All indebtedness under the Loan is repayable on
demand at any time and may be prepaid in whole or in part without
penalty. In addition, all indebtedness under the Loans shall rank
equally with the other Demand Loans and senior to all other
indebtedness of the Company. There are no structuring fees to be
paid by the Company in conjunction with the Loan.
The funds advanced under the Loan are expected
to satisfy the Company's immediate working capital requirements
into early January 2013 as the
Company continues with its corporate restructuring efforts as
disclosed in its condensed consolidated interim financial
statements dated September 30, 2012
and its audited consolidated financial statements dated
March 31, 2012, both of which are
available on SEDAR (www.sedar.com).
The Company continues to undertake a detailed
and continuous budgeting and review process. The Company will
continue to work with its major shareholder to secure funding on a
short-term basis to be used to finance operations as the Company
works to minimize its ongoing cash requirements and realize the
maximum value from selected portions of its property, plant and
equipment. Further funding is at the sole discretion of the
Company's major shareholder.
Caution Regarding Forward-Looking Information and
Statements
Certain statements in this press release address
future events and conditions and, as such, involve known and
unknown risks, uncertainties and other factors which may cause the
actual results, performance or achievements to be materially
different from any future results, performance or achievements
expressed or implied by the statements. These factors include,
among others, the extent of the Company's working capital
requirements, the Company's ability to access further short-term
financing, the timing and nature of further legal action initiated
by the Company and the possibility of appeals or new litigation by
parties opposed to the project. These statements are made as of the
date of this release but Company undertakes no obligation to update
these forward-looking information or statements if circumstances or
management's estimates or opinions should change. The reader is
cautioned not to place undue reliance on forward-looking
information or statements.
INFINITO GOLD LTD.
John
Morgan
President and CEO
"Neither the 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 and accuracy of this release."
SOURCE Infinito Gold Ltd.