Lydian International Ltd (TSE:LYD) (OTCMKTS:LYDIF) rose Monday after reaching an amended forbearance agreement with its creditors.
The Armenia-focused gold company said in a press release that its senior lenders, stream financing providers and equipment financiers have agreed to continue to suspend temporarily all principal and interest payments due. They also continue to delay exercising default-related rights or remedies under financing agreements.
Shares of Lydian climbed C$0.02, or 10%, to C$0.16 in Monday’s Canadian trading. They advanced US$0.01, or 5.5%, to US$0.12 on the OTC Markets.
The company added that Orion CO IV (ED) Ltd, Resource Capital Fund VI LP and Osisko Bermuda Ltd have committed to make available up to $18.56 million to finance the company during the forbearance period through an amendment to the company's existing credit agreement.
"We are extremely pleased with this positive development in the company's ongoing pursuit of strategic alternatives,” CEO Joao Carrelo said in a statement.
The forbearance agreement is required as a result of directives that have prevented Lydian and its contractors from entering the Amulsar site in Armenia since late June, according to Lydian. The company said that it has petitioned local and national government officials to remove the directives.
Lydian said the forbearance facility will be available to be drawn in multiple advances from January 1 through the maturity date of June 30. The forbearance facility will have a 15% annual interest rate and will include a 3% fee paid by original issue discount at each drawdown.
The availability of the forbearance facility and any advances are subject to conditions of the loan documentation, which must be made final by January 15, according to Lydian.
Contact Dennis Fitzgerald at [email protected]