Cambior paid $4 million and provided a gold loan worth up to $6 million to acquire its half-interest in the mine. Cambior has been appointed initial manager of the new joint venture for the mine. Ore from the mine will be processed at Cambior’s Pascalis facility which is under construction in the Val d’Or area.
Proceeds of the sale and of the first tranche of the gold loan have been used by Louvem mainly to repay suppliers and other indebtedness.
Part of the proceeds ($262,000) were also used to replenish the reserve fund maintained under Louvem’s gold warrant indenture, while another $260,000 was used to provide for partial payment of $2 million aggregate principal amount of Series A debentures of Louvem maturing June 14.
Louvem reports the holders of its gold purchase warrants have adopted an extraordinary resolution authorizing the sale and charging of the company’s interest in the mine and also providing for certain amendments to the gold warrant indenture.
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