Three trade creditors have agreed to take shares in payment of debts, significantly advancing the financial restructuring under way at junior gold producer Geomaque Explorations (GEO-T).
Geomaque’s principal lender, Resource Capital Fund II, transferred an oustanding warrant to the three creditors: equipment distributor Butler Machinery, contractor Sococo de Costa Rica, and financial advisor Haywood Securities. The creditors, in turn, exercised the warrant to receive 17.4 million shares of Geomaque. The exercise price of the warrant, US$825,000, was waived and applied against the creditors’ accounts.
Butler will also get part of the proceeds from the sale of equipment from Geomaque’s San Francisco gold mine in Mexico, provided the equipment fetches more than US$500,000. It also receives a 1% net smelter return on any production from unmined parts of the main San Francisco pit. The deal clears off Geomaque’s debt to Butler.
Sococo, which was owed about US$2 million, agreed to a schedule for payment of the balance of the amount owing. Haywood took down a block of shares in exchange for reducing the amount Geomaque owes it for financial advice.
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