Canadian Arrow announces extension of loan
07:30 EST Thursday, March 05, 2009
SUDBURY, ON, March 5 /CNW/ - Canadian Arrow Mines, Ltd. (CRO: TSX-V) (the "Company"), is pleased to announce that it has reached an agreement with an arms-length third party lender to extend the term of its $1,500,000 loan to January 31, 2011.
The loan which was announced by press release on May 26, 2008 is secured by a charge against all of the Company's assets, bears interest at a variable rate per annum equal to prime plus 2% calculated daily and compounded monthly and matures on the earlier of (i) the date on which an event of default occurs under the loan or the security, (ii) the date on which Canadian Arrow completes any equity or debt financing after the date hereof for net proceeds of at least $5,000,000, and (iii) January 31, 2011.
In connection with the extension, the Company also agreed that the lender would have an option to have all or a portion of the loan repaid in common shares of the Company any time after the completion of an equity financing by the Company, with the deemed issue price of such shares being equal to the issue price under the financing. Furthermore, the Company was provided with an option of repaying the loan through the transfer of an interest in its Kenbridge property.
The revised note as well as the ability to repay in either common shares of the Company or the transfer of the property interest will be subject to the receipt of all necessary regulatory approvals including the TSX Venture Exchange.
Investors are invited to visit Canadian Arrow's IR hub at http://www.agoracom/IR/CanadianArrow where they can post questions and receive answers within the same day, or simply review questions and answers posted by other investors. Alternately, investors are able to e-mail all questions and correspondence to CRO@agoracom.com where they can also request addition to the investor e-mail list to receive future press releases and updates in real time.