Elgin Mining Closes Bridge Loan Facility
September 25, 2013
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Vancouver, British Columbia, September 25, 2013 - Elgin Mining Inc.
("Elgin Mining" or the "Company") (TSX: ELG and ELG.WT)
is pleased to announce that, further to its news release of
August 27, 2013, it has completed the bridge loan credit
facility (the "Facility") with Sprott Resource Lending
Partnership (the "Lender").
The Facility is for the principal amount of $5 million at an
interest rate of 10 percent per annum, compounded and payable
The term of the Facility is eighteen months, at which time the
Facility will be due and payable in full.
In consideration for the advance of the Facility, the Company
has made a bonus payment in cash to the Lender in the amount of
$350,000, being 7% of principal amount.
In consideration for the structuring and syndication of the
Facility, the Company has paid to the Lender a cash structuring
fee of $50,000.
The proceeds of the Facility will provide the Company with
additional liquidity to continue development of the Company's
Bjorkdal Mine in Sweden and to fund working capital and general
and administrative costs.
As a result of the fact that the Lender is an affiliate of an
insider of the Company and that a director of the Company will
participate in the syndication of the Facility, the Facility is
considered a "related party transaction" pursuant to
Multilateral Instrument 61-101 -- Protection of Minority
Securityholders in Special Transactions ("MI 61-101").
The transaction is exempt from the requirements to obtain a
formal valuation, pursuant to Section 5.5(a) of MI 61-101, and
minority shareholder approval, pursuant to Section 5.7(a) of MI
61-101, as the fair market value of the Facility and any
consideration paid by the Company in connection with it, will
not exceed 25% of the Company's market capitalization.
The Facility was considered and approved by the board of
directors of the Company, other than the director who will
participate on syndication of the Facility and who abstained
from such approval.
Elgin Mining Inc.
Elgin Mining is a Canadian based company focused on production
at the Björkdal gold mine in Sweden.
In addition, Elgin Mining's portfolio includes
the Lupin and Ulu gold projects located in Nunavut, Canada.
For further information, please visit the Company's web site at http://www.elginmining.com
Elgin Mining Inc.
President and Chief Executive Officer
Tel: (604) 682-3366 / Fax: (604) 682-3363
email@example.com / http://www.elginmining.com/s/Bjorkdal_Gold_Mine.asp http://www.elginmining.com/i/pdf/ELG-Investor-Presentation-May2013.pdf http://www.elginmining.com/i/pdf/InvestorFactSheet-June2013.pdf http://www.elginmining.com/s/Other_Properties.asp http://www.elginmining.com/s/Investors.asp http://www.elginmining.com/s/Properties_Overview.asp http://www.elginmining.com/s/RegulatoryFilings.asp http://investorshub.advfn.com/Elgin-Mining-Inc-(Gold-Ore-Resourses)-TSX-ELG-6067/
Why $50,000 Gold? http://www.jsmineset.com/2013/04/19/why-50000-gold/ http://www.biblebelievers.org.au/monie.htm