HomeBusiness and policyGoviEx to receive US$3 million from Linkwood loan repayments

GoviEx to receive US$3 million from Linkwood loan repayments

TSX-listed GoviEx Uranium has agreed to amend certain terms of the short-term loan it made to Linkwood Holdings.

Linkwood is now scheduled to repay GoviEx all outstanding loan principal and interest amounts by end of June 2019.

“Linkwood’s assistance helped to ensure the conclusion of our transaction with Toshiba Corporation and enabled GoviEx to settle a uranium price linked loan at a discount to the spot market uranium price before the recent upward price move,” notes Executive Chairman Govind Friedland.

Friedland further noted that Linkwood’s repayment schedule, together with the private placement the company is announcing today means that GoviEx remains well-funded going into 2019.

GoviEx and Linkwood have agreed to a six-month extension to the final loan repayment on the basis that Linkwood make monthly repayments to GoviEx starting with an initial repayment amount of US$402,000 in February 2019.

Linkwood will then make monthly repayments of US$270,000, US$567,000, and US$563,000 in March, April and May, respectively, with a final payment of US$1.12 million in June 2019.

These repayments include approximately US$212,000 in interest.

GoviEx has closed a non-brokered private placement financing of 5,879,411 units at a price of C$0.17 per unit, with each unit consisting of one (1) Class A common share and one (1) Class A common share purchase warrant for gross proceeds of C$999,499.87.

Each warrant entitles the holder to purchase one Class A common share of the Company over a 36-month period at a price of US$0.21 until December 31, 2019, US$0.24 until December 31, 2020, and US$0.28 until December 31, 2021.

These two sources of finance will be used to advance key aspects of fully permitted Madaouela project including continued engineering and project optimization, and to advance primary corporate objectives related to project finance, long-term off-take and for working capital and general corporate purposes.

All securities issued under this private placement will be subject to the customary four-month hold period and may not be traded before May 1, 2019.

GoviEx insiders subscribed for a total of C$8,500 or 50,000 units.