The company reached an agreement with its banking syndicate to use US$10.9 million of its collateralized cash to pay the loan balance down to US$7 million and leave a cash collateral of US$2 million. After the paydown, Dayton will have US$9.5 million, or US$7.5 million net of the cash collateral, in its treasury.
As a result, quarterly repayments, due in January and April 1999, will be reduced to US$1 million each from US$3.6 million. The interest rate through to April 19, 1999, will continue at LIBOR plus 1.25%.
The banks have agreed to waive all existing defaults until April 19. At that time, Dayton is expected to be in full compliance with all terms of the loan agreement.
Says Dayton President William Myckatyn: “This agreement reduces the costs of servicing the loan facility and permits management to concentrate its efforts on seeking other growth opportunities and improving the operation.”
Gold production at the Andacollo Gold mine amounted to 11,058 oz. in December 1998. The mine churned out 30.558 oz, in the fourth quarter and 92,548 oz. in all of 1998. Operating costs have yet to be reported.
Andacollo is an open-pit, heap-leach mine near the coastal city of La Serena. At the end of 1997, minable reserves were estimated at 45.4 million tonnes grading 0.87 gram gold, equivalent to 1.3 million oz., at a stripping ratio of 1.87-to-1. The total resource stands at 132.9 million tonnes grading 0.67 gram gold.
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