Republic Goldfields to restructure debt

Republic Goldfields (VSE) has entered into agreements with its two principal bankers, the Bank of Nova Scotia and the Royal Bank of Canada, to restructure and refinance all of its existing $3.2 million of bank debts.

Under the terms of the agreements, Republic’s outstanding bank debt will be reduced by more than 70% to $900,000 and this remaining balance rescheduled into a two-year term loan.

Having restructured its debt, the company hopes to resume operations at its 100% owned Congress gold mine in Arizona which has been closed since August, 1992. Republic President Marc Henderson says that the first priority at the mine will be to expand the deposit’s reserve base beyond the current 15-month inventory.

In addition to the Congress property, the company has an interest in the Ellison gold property in Bousquet Twp., Que., and receives a production royalty from the Dubuisson East gold property, near Val d’Or, Que., which is now in production.