A long-term credit facility worth $1.5 million has been signed by Armistice Resources (ME) with Dynatec Mining, a subsidiary of Dynatec International. Security for advances under the facility are Armistice’s property holdings at Virginiatown, Ont. The property sits adjacent to the old Kerr mine which is owned by Deak Resources (TSE) and its subsidiary GSR Mining.
Terms on the debt provide for monthly interest payments only beginning July 31, 1991, and principal repayment from 60% of the net proceeds of gold recovered from bulk samples. Once the property is in production, minimum blended payments of $100,000 monthly are required. Interest on the facility has been set at prime plus 2% per year.
Armistice began exploring the property in hopes of proving the theory that the Kerr orebody downfaulted at its western boundary and continued on to the Armistice claims. GSR is earning an interest in the Armistice project by conducting a deep exploration program from the old Kerr mine workings.
Meanwhile, Armistice is hoping to raise $450,000 for exploration work through a flow-through offering.
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