North American Tungsten Receives Approval for Interim Financing in Proceedings Under Creditors Arrangement Act

North American Tungsten Corporation Ltd. (TSXV:NTC) announced that its has entered into a $2.5 million Interim financing with Callidus Capital Corporation. The arrangement was approved by the Supreme Court of BC on July 9.
As quoted in the press release:

Under the terms of the Interim Facility, Callidus has agreed to lend to the Company $2.5 million, to be drawn down in accordance with the Company’s cash flow statement that has been provided to Callidus. The interest rate for the Interim Facility is 21% per annum, subject to an additional 2% default interest rate. The Interim Facility will mature on the earlier of November 15, 2015 and the end of the stay of proceedings pursuant to the initial Court order (the “Initial Order”) under the Companies’ Creditors Arrangement Act (“CCAA”). The Interim Facility is secured by a first-ranking super priority charge against all assets of NATC. The Company also entered into a forbearance agreement (the “Forbearance Agreement”) with Callidus pursuant to which the Company has agreed to continue to make payments to Callidus in respect of its existing loans and other covenants in return for Callidus forbearing from exercising its rights and remedies under its existing loans.
On June 9, 2015, NATC commenced restructuring proceedings under the CCAA pursuant to the Initial Order. NATC’s need to restructure under the CCAA was attributable to a number of factors including the continuation of low prevailing market prices of APT, high debt service payments, insufficient capitalization, and operational issues.

Click here to read the full North American Tungsten Corporation Ltd. (TSXV:NTC) press release.