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Ram Power closes US$50m 2-year term credit facility

Drilling Rig at Orita Well #3, California (source: Ram Power)
Alexander Richter 3 Mar 2011

Ram Power Corp. closes US$50m two year term loan credit facility with Sprott Resource Lending, Exploration Capital Partners 2008, and Newberry International Holdings to refinance earlier credit facility and additional funding.

In a release by the company, “Ram Power, Corp. (TSX: RPG) announced that it successfully closed a $50 million, two-year term loan credit facility with Sprott Resource Lending Partnership, Exploration Capital Partners 2008 Limited Partnership and Newberry International Holdings Ltd.

The Credit Facility will refinance the interim $12 million credit facility closed with the Lenders on February 4, 2011 and will provide $38 million of additional funding for the Company. The Credit Facility is secured by certain assets of the Company and its subsidiaries. In connection with the Credit Facility, the Company has issued 18,031,251 common share purchase warrants (the “Warrants”) to the Lenders with an exercise price of C$1.36 per share. The Warrants will expire on February 28, 2013 (subject to the earlier termination in certain circumstances) and will vest and become exercisable only upon and to the extent that loans are made under the Credit Facility and in the proportion that such loans bear to the total amount of the Credit Facility. The exercise of the Warrants is subject to the satisfaction by the Company of the listing conditions of the Toronto Stock Exchange.

Walter Higgins, Interim CEO of Ram Power, stated, “This new credit facility is the latest step in management’s commitment to put Ram Power on firm long-term financial footing while we continue to develop our portfolio of projects in both Central America and the United States.”

Source: Company release via Marketwire