Arianne Phosphate Inc. said Dec. 8 that it amended and extended its current C$19.5 million secured credit facility, set to mature on Dec. 31, to Jan. 15, 2019.
The facility will bear interest at an annual rate of 15% with all interest capitalized through the end of the facility.
Additionally, the company will issue 17,181,739 warrants to the lender, exercisable at 68 cents apiece through Jan. 15, 2019, representing 60% of the face value of the credit facility.
Arianne will also pay the lender a commitment fee of 3% of the total amount of the credit facility at maturity.
The parties have also agreed to terminate 3,717,000 non-transferable warrants, issued to the lender in October 2015, at closing, which is expected to occur shortly.
"With this agreement now in place, Arianne has extended by [13] months any payments, both interest and principal, associated with its credit facility and can now fully focus on its current discussions with financiers and strategic players without this immediate liquidity concern," CEO Brian Ostroff said.
Arianne is advancing the Lac à Paul phosphate project in Quebec.
