Expatriate seeks extension

A US$5-million financing with Resource Capital Fund II has collapsed, leaving Expatriate Resources (EXR-V) unable to complete a $1-million payment to Cominco (CLT-T) that was due May 24.

Expatriate has asked for an extension so that it can seek alternative financing to provide for the first of four required annual payments totalling $10 million. In March of last year, Expatriate struck a deal with Cominco to acquire the undeveloped Kudz Ze Kayah polymetallic deposit and the smaller GP4F deposit. The projects are in a land package covering 580 sq. km in the Finlayson Lake district of southeastern Yukon.

The price tag was $1 million cash, which was paid, plus a $10-million convertible debenture. The debenture was to be repaid over four years, with $1 million payable on each of the first, second and third anniversaries, and the balance on the fourth anniversary.

The deal also called for Cominco to receive a $2-million payment at production, while retaining a sliding-scale net smelter return royalty.

Expatriate has delayed the startup of this year’s planned exploration in the Finlayson district until it determines whether Cominco will extend the payment deadline. Expatriate currently has $1.4 million in working capital, which is earmarked for exploration expenditures.

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