The Company does not expect to be in a position to satisfy the monthly payments in cash or gold unless it raises capital or until such time as the Borealis Mine has increased its gold production levels and has made distribution to its two members. The Company anticipates it is unlikely it will receive any distributions from the Joint Venture prior to the third calendar quarter of 2013.The payments under the Credit Agreement are in addition to the payments due by the Company to Waterton under the Borealis Limited Liability Company Agreement (the " LLC Agreement") for advances to Borealis by Waterton on the Company's behalf. Such amounts equal $4.8 million from January 31, 2013 to date (the "$4.8 million advance"). The interest on amounts advanced by Waterton to Borealis on behalf of the Company is calculated at 10% per annum for the first month following the advance, 20% per annum for the second and third months following the advance, 30% per annum for the fourth month following the advance and 40% per annum for the fifth and sixth months following the advance. The principal and accrued interest on the $4.8 million advance is due by July 31, 2013. As of March 31, 2013, the accrued interest on the $4.8 million advance is $120,000. If the Company is unable to satisfy any of the $4.8 million advance plus accrued interest or subsequent advances and interest, its interest in Borealis Mining Company LLC would be reduced by 25%.
Gryphon Gold Provides Update On Senior Credit Facility
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