A second-quarter writedown of its Sleeping Giant gold property near Amos, Que., left Aurizon Mines (TSE) in breach of a covenant in the agreement with its Swiss bondholders to maintain a minimum net worth of at least $20 million, the company reports. Aurizon says it plans to negotiate with Banque Indosuez, which is representing the bondholders, to amend the agreement. Failure to reach a settlement would result in the company having to redeem all of the outstanding bonds at their nominal value (about $31.3 million), plus accrued interest of about $920,000.
The company’s current working capital is about $1.5 million. The Sleeping Giant mine produced 29,552 oz. gold in 1989.
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