The lender to the Ivanhoe joint venture has agreed to extend a term loan to joint venture partners Galactic Resources (TSE) and Cornucopia Resources (TSE).
The companies owed US$6.86 million at the end of July of this year. The lender agreed to extend the term of the loan to Aug. 31, 1992, postpone the July and August loan payments, as well as lower the monthly loan payments to US$571,000 from US$850,000.
In addition, monthly payments in alternating months beginning Oct. 31 will be reduced by US$333,000.
Galactic and Cornucopia operate the Ivanhoe open pit heap leach gold mine in Nevada. The mining of the current phase is expected to be completed later this year. The joint venture is awaiting permits for the second phase of the project which will extend the mine life past 1995.
In an unrelated development, Galactic issued a total of 8.625 million shares to Home-stake Mining (NYSE) under the 1988 purchase of the Bodie property in California.
The issue completes Galactic’s commitment under the purchase agreement and gives Homestake a total of 14.125 million shares or about 25.93% of the company’s outstanding shares.
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