Magma Energy receives $9.6million credit line for HS Orka payment
Arrival of HS Orka's Fuji 50 MW Turbine in Iceland (source: Magma Energy)
Alexander Richter
10 Jul 2010
Magma Energy Corp enters credit agreement with Ross Beaty, its chairman and CEO, for a credit line of US$9.6 million to pay amounts due for its acquisition of shares in Icelandic HS Orka and general working capital needs of the company.
“Magma Energy Corp. (TSX: MXY) entered into a credit agreement with Mr. Ross Beaty, the Company’s Chairman and Chief Executive Officer, pursuant to which the Company is able to borrow up to C$10 million (US$9.6million) to pay amounts coming due by the Company to Geysir Green Energy ehf respecting the acquisition of shares of HS Orka hf, and to fund general working capital requirements of the Company.
Any advances under the Credit Agreement are repayable on the earlier of twelve months from the date of the initial advance, a change of control of the Company or on a default by the Company.
Interest at the rate of 8% per annum, compounded daily, is payable monthly commencing on July 30, 2010. In addition, a standby fee in the amount of 1% of the credit facility and a drawdown fee in the amount of 1.5% of the amount advanced is payable in cash. As of the date of this news release, the principal amount of the Credit Facility has been advanced to the Company to be used in connection with the acquisition of shares of HS Orka hf.”
Source: Company release via e-mail, PR Newswire
