A credit facility of up to $10 million has been arranged by Dickenson Mines (TSE) with a Canadian chartered bank to assist in funding the retraction of its 8.5% convertible subordinated debentures. Dickenson will use the credit facility and its funds on hand to redeem the $19.7 million principal amount of the debentures. The debentures were redeemable on Sept. 30.
The 1-year credit facility has been guaranteed by Goldcorp (TSE) which owns about 69% of the outstanding equity shares of Dickenson. In exchange for providing its guarantee, Goldcorp will receive a guarantee fee of $200,000, and a monthly fee of one-twelfth of 1% of the initial amount guaranteed while the guarantee is outstanding. Goldcorp also receives an option to acquire 700,000 class A shares of Dickenson for a period of three years at $3.65 per share.
Dickenson also announced that it has reached an agreement with its banker to extend the maturity of its gold loan by six months to Dec. 29, 1995.
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