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Vancouver, British Columbia--(Newsfile Corp. - August 1, 2024) - INCA ONE GOLD CORP. (TSXV: INCA.H) (OTC Pink: INCAF) (FSE: SU92) ("Inca One" or the "Company") announces that, further to the Company's June 4, 2024 and June 14, 2024 press releases, on July 25, 2024 and pursuant to the Companies Creditors Arrangement Act ("CCAA"), the Supreme Court of British Columbia extended the Stay Period under a Second Amended and Restated Initial Order (the "Second ARIO") until August 26, 2024.
DIP Loan
The Second ARIO approved the Company to enter into an interim financing to be provided by a private lender in the form of a Debtor-In-Possession Term Loan ("DIP Loan") for the principal sum of up to US$1 million.
The DIP Loan will be for general working capital, including legal, restructuring, administrative and general corporate costs in connection with the CCAA proceedings and the Court approved cashflows.
The DIP Loan will have priority security ranking over all secured creditors.
The terms of the DIP Loan will allow Inca One to drawdown funds in two tranches, the first in the amount of US$750,000 and the second in the amount of US$250,000. Each tranche is subject to a 5% drawdown fee payable at the time of each drawdown. Interest accrues at a rate of 20% per annum calculated monthly and undrawn amounts are subject to a 2% standby charge, both are payable upon maturity. The maturity date is the earliest of, the date on which the lender demands repayment after the occurrence of an event of default, the implementation of a Court approved Plan of Arrangement and Compromise within the CCAA proceedings, the termination of the CCAA proceedings and November 30, 2024.
In connection with the DIP Loan, the Company will issue an aggregate of 5,000,000 share purchase warrants (the "Warrants") to the lender. Each Warrant entitles the holder to purchase one common share of the Company at an exercise price of C$0.10 for a period of 12 months from the issue date.
Since the Company was forced to enter CCAA, it has made significant efforts to reduce costs. Currently both plants are on care and maintenance and preparing to restart operations once the Company emerges from CCAA proceedings.
With a robust gold price and strengthening precious metals market Inca One is using the time granted by the CCAA process to restructure its existing liabilities and secure a significant new funding package.
Additional information regarding the CCAA proceeding can be found on the Monitor's website at http://cfcanada.fticonsulting.com/incaone.
