Bullfrog Gold Secures $4.2 Million Debt Facility
GRAND JUNCTION, Colo., Dec. 12, 2012 (GLOBE NEWSWIRE) -- Bullfrog Gold Corp (OTCBB:BFGC) ("Bullfrog" or the "Company") is pleased to announce the execution of a secured $4.2 million debt facility (Facility) with RMB Australia Holdings Limited (RMBAH). Funds from this facility are specifically for advancing the Newsboy Gold Project (Project) located 50 miles NW of Phoenix, Arizona and certain administrative costs. An 18-month budget and program includes drilling 28,000 feet in 69 exploration and development holes and furthering environmental, engineering and economic studies. The balance of funds drawn will be used for project and corporate administration, including property payments, financing fees and debt service.
The Facility includes an arrangement fee of 7%, bears interest at LIBOR plus 7.0% and is pre-payable without penalty anytime during the two year period from the December 10, 2012 closing date. RMBAH was issued 7 million warrants to purchase the Company's common stock at a price of $0.35 per share during a three-year exercise period. Per the Facility, Bullfrog agrees to seek a listing on another recognized exchange satisfactory to RMBAH (TSXV, TSX, Amex et al) within one year. The Facility required Bullfrog to deposit $875,000 of equity in a proceeds account to allow the first draw and thereafter maintain a $500,000 equity balance. All legal due diligence and documentation has been completed for the Facility, which was arranged by RMB Resources' Denver, Colorado office on behalf of RMBAH.
David Beling, President & CEO of Bullfrog commented "This Facility allows Bullfrog to further explore and develop the Project and provides a strong endorsement of the Company's management and its key Project by a bank of RMB's international standing and expertise."About RMB Resources RMB Resources a financing unit of Rand Merchant Bank, a member of the FirstRand group, one of the largest financial services groups in South Africa. The company focuses on providing equity and debt financing to small and medium size mining and exploration companies across a broad range of mineral commodities.
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