3rd line of credit for $10MM was implemented and the 2 previous lines of credit were ammended. Total of $40MM in credit facilities as of Q3 2014...Page 16 of the September 30, 2014 financials...
16. BANK LOANS
In February 2013, the Company announced the arrangement of two credit facilities. The credit facilities for $30,000 were completed with two commercial banks in the Congo, Rawbank and Ecobank, each for $15,000, and at rates of 9% and 8.5% interest, respectively.
The Rawbank facility was made available to Twangiza Mining SA, while the Ecobank facility was to Namoya Mining SA. Both facilities have been fully drawn.
The Ecobank facility was renegotiated in May 2014 to be repayable in four equal quarterly payments from May 31, 2015. The restructuring of the Ecobank agreement represents a modification of the agreement and has been reflected in the current period. During the three months ended September 30, 2014, $3,000 was received as a short-term loan from Ecobank, which was
repaid in its entirety during the period.
The Rawbank facility (including accrued interest) referred to above was renegotiated in October 2013 to be repayable in ten equal monthly installments starting in April 2014. The said facility was fully repaid in August 2014. In July 2013, an additional $3,000 credit facility was received from Rawbank. The loan bears interest of 10% and is repayable
over 24 equal monthly installments starting in September 2014.
In September 2013, the Company received a $10 million credit facility from a bank in the Congo, Banque Commerciale du Congo ("BCDC"), at a rate of 8% interest. The facility has been fully drawn. The BCDC loan was repayable, starting February 2014, in ten equal monthly installments of $1,000 and a final installment of $384. Subsequent to the first monthly
installment, the remainder of the BCDC facility was renegotiated to be repayable in monthly installments of $500 for the remaining 16 months and final installment of $221. The interest rate was increased to 9.5% per annum.
As of September 30, 2014, bank loans consisted of a current portion of $14,558 (December 31, 2013 - $29,250) and a noncurrent
portion of $8,203 (December 31, 2013 - $13,250). During the three and nine month periods ended September 30,
2014, $16,230 and $22,739, respectively, was repaid for principal on bank loans (three and nine month periods ended
September 30, 2013 - $250 and $10,250).
The Company has accrued interest on the credit facilities of $62 as of September 30, 2014 (December 31, 2013 - $419) under
accrued liabilities in its interim condensed consolidated statement of financial position. The Company has recorded interest
expense of $119 and $770, respectively, for the three and nine month periods ended September 30, 2014 (three and nine
month periods ended September 30, 2013 - $341 and $911, respectively) and $470 and $1,627 was recorded in mine under
construction for the three and nine month periods ended September 30, 2014 (three and nine month periods September 30,
2013 - $nil) in relation to the bank loans.
