Dayton to restructure debt

Dayton Mining (DAY-T) reports that it is in discussions with its creditors for the purpose of restructuring its bank debt.

All existing defaults were waived by the lenders through to Oct. 19, 1998, but, as of yet, no extensions have been granted. Dayton is therefore technically in default under the existing loan agreement.

“Although there is no assurance that an agreement will be reached, there is currently US$17.9 million outstanding on the loan, of which US$12.9 million is cash-collateralized,” says William Myckatyn, Dayton’s chief executive officer. “Given that only US$5 million is not cash-collateralized and the lenders are secured by the wholly owned Andacollo gold mine [in central Chile], we are hopeful that a satisfactory agreement can be reached.”

Reserves are pegged at 45.4 million tonnes averaging 0.87 gram gold per tonne.