A new loan facility totalling US$12.5 million was recently negotiated by Plexus Resources (TSE).
Plexus will use the funds to repay an existing 17,100-oz. gold loan (US$7.2 million) as well as US$2.7 million in short-term debt.
The new facility includes a US$10-million, 27,500-oz., 6-year gold loan plus two revolving loans providing up to US$2.5 million for working capital purposes.
The gold loan is convertible into a currency loan at the company’s option and the term can be extended for one year.
Plexus plans to use the balance of the proceeds from the credit facility for general corporate purposes.
As at Mar. 31, 1991, Plexus had a working capital deficit of US$6.4 million and long-term debt totalling US$5.3 million.
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