Importance of May 20th
The Company also has established an aggregate $53.0 million senior secured credit facility consisting of a $43.0 million project financing facility and a $10.0 million cost overrun facility (collectively, the “Senior Debt Facility”) with Commonwealth Bank of Australia (“CBA”) to fund development and construction of the Pan Project (Note 8). Approximately $5.5 million of the Senior Debt Facility was undrawn as of March 31, 2015. As a result of Pan project delays and lower gold production forecast, the Company determined that it does not have sufficient funds to complete construction of the Pan Mine and fund operating and reserve accounts and satisfy other requirements under the Senior Debt Facility. As a result, the Company was not in compliance with certain tests required under the Senior Debt Facility. On March 13, 2015, the Company entered into a waiver to the Senior Credit Agreement (the “Waiver”) with the lender providing the Company a waiver of certain tests required under the Senior Debt Facility until April 20, 2015. The Company was unable to comply with the provisions of the Senior Debt Facility that were waived pursuant to the Waiver in the time period specified therein and as a result, the Company is currently not in compliance with the terms of the Senior Debt Facility and has until May 20, 2015 before the non-compliance becomes an event of default. The lenders may declare all unpaid amounts under the Senior Debt Facility to be immediately payable when an event of default occurs. Furthermore, the Company does not believe that it will satisfy the conditions precedent to draw the remaining $5.5 million under the cost overrun facility.
AI
