This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Gryphon Gold Provides Update On Senior Credit Facility

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%.

In addition to the Credit Facility and the $4.8 million advance the Company also owes accrued interest on the Credit Facility of $137,354 to Waterton, and an intercompany loan of $296,044 due to Borealis Mining Company, LLC.

Reference is made to the Company's reports on Form 8-K dated February 5, 2013 available on sec.gov and sedar.com for a description of the Credit Agreement and the LLC Agreement.

2 of 3

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 16,943.81 +28.74 0.17%
S&P 500 1,967.57 +2.89 0.15%
NASDAQ 4,415.49 +19.2860 0.44%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto
Advertising Partners

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs