News

Magma Energy extends credit facility to $20m and 24 month term

Magma Energy extends credit facility to $20m and 24 month term Mariposa Drilling Site, Chile (source: Magma Energy)
Alexander Richter 15 Dec 2010

Magma Energy Corp. extends existing $10 million credit facility from a 12 month term to a 24 month term and increased the amount available under the facility to $20m.

In a release by the company, “Magma Energy Corp. (TSX:MXY) announces that it has extended its existing $10 million credit facility from Ross Beaty, its Chairman and CEO from a 12 month term to a 24 month term and has increased the amount available under the facility to $20 million.

Draws will be made in tranches as necessary to meet working capital needs, particularly during the period that $28.8 million of Magma’s cash resources are restricted under a four month bridging facility entered into in connection with Magma’s final HS Orka purchase payment on December 7, 2010. Any funds drawn down by Magma from the facility will bear identical terms as per the original facility entered into on July 5, 2010.”

Source: Company release by e-mail