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Saturday, 03/10/2012 2:22:13 PM

Saturday, March 10, 2012 2:22:13 PM

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Here's Waterton Global's perspective from their website on their partnership with Scorpio Gold.

Scorpio Gold Term Debt Facility: Gold Heap Leach Expansion

WATERTON GLOBAL’S SOLUTION
Type: Customized Term Debt
Size: $12 MM
Duration: 18 months

Scorpio Gold Corporation (TSX: SGN): A near term US gold producer was introduced to Waterton Global by a Canadian investment bank in order to borrow funds to:
•Repair a heap leach pad
•Refurbish an onsite crusher
•Provide working capital
•Purchase equipment
•Attract senior management to the team

Flexible Solution:
•Waterton Global provided a short term Bridge facility to the company prior to closing the $12 MM term debt facility in order to assist the company with immediate working capital needs.
•Waterton Global worked with Scorpio Gold’s Joint Venture Partner, Golden Phoenix, to restructure their earn-in agreement and buy/sell agreements, allowing Scorpio to avoid an onerous covenant that would have prevented them from entering the debt market.
•Waterton Global provided Scorpio a waiver within 24 hours to allow the company to capitalize on an opportunity to purchase equipment instead of continuing to lease.

Efficient Transaction Execution:
•Asset related diligence completed within 10 days following signing of term sheet.
•Target achieved of closing the term debt financing within 3 weeks.
•A strong rapport was quickly established between Waterton Global and Scorpio, allowing the company to complete their engineering and mining plan prior to closing the transaction and providing the company a head start in attracting additional members to the senior management team.

Effective Results:
•Scorpio Gold was able to begin production from their gold heap leach facility 4 months following funding. The valuation of the company increased by 35% as a result.
•The $12 MM term debt facility was 75% less dilutive than the equity financing route available to them.
•Given the balance sheet strength provided by Waterton Global and management’s operational progress, Scorpio Gold was able to raise $11.6 million on terms which limited dilution by 35%.

http://watertonglobalresource.com/scorpio-gold-corporation/