Riverstone Inks $5 Million Credit Facility With Sprott
Riverstone Resources Inc. announced that it has entered into an agreement with Sprott Resource Lending Partnership to provide a $5 million secured credit facility.
The credit facility is repayable on December 31, 2012 and bears interest at the rate of 12% per annum, payable monthly in arrears. The facility can be prepaid in whole or in part without penalty provided a minimum of six months interest is paid and is secured by general security over the present and after-acquired property of the company and its subsidiaries. Proceeds of the facility will be used to fund a portion of the option exercise price in connection with the company’s acquisition of an indirect 90% interest in the Goulagou, Rounga, Tougou and Youba properties in Burkina Faso, West Africa.
“Securing this credit facility further enhances the company’s cash position allowing us much more flexibility in determining the proportion of cash and shares we will provide to Golden Star under the option agreement,” commented Dwayne L. Melrose, president and COO of Riverstone. “The company will continue to examine our opportunities, with this credit facility further allowing the company to limit the dilution of the existing shareholders while reserving sufficient cash on hand to provide for the continuation of our planned exploration program in 2012.”