A funding agreement has been completed in principle, between Canamax Resources and its major shareholder, Amax Gold. Under the deal, Amax will make available to Canamax a $10-million (US) revolving credit facility. Funds can be drawn to August 1989 and may be repaid at Canamax’s option either in cash or in common shares at current market prices.
The deal, in combination with a $35-million gold loan and $12 million in working capital, gives Canamax access to more than $60 million in funds. The cash will be used for the development of the company’s three gold mining projects scheduled for production in 1988- 1989.
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