Robex Resources inc. ("Robex" or the "Company") confirms the closing of a CDN$3.5 million temporary credit facility (the "Credit Facility") provided by Mr. Georges Cohen, President and CEO of the Company.
The Credit Facility has a term expiring on May 31, 2015, bears an interest rate of 8% per year and is guaranteed by a second rank hypothec on the present and future movable property of the Company as security for the Credit Facility.
The purpose of the Credit Facility is to meet the temporary cash flow needs of the Company as it prepares to enter into the production phase of its Nampala mine in Mali (the "Mine"). This cash flow need is attributable to the report of a few weeks of the completion of the first doré bullion bar pour, resulting from additional delays in gold room commissioning. These technical challenges do not jeopardise the production capabilities of the Mine nor should result into financial losses. Effectively, despite the report of the completion of the first doré bullion pour, gold ore processing is still ongoing at the rate of 2,500 tons per day and thus, should not result into any financial losses for the Company. As at July 19th, CIL circuit was containing 26.7 kg of gold (857 ozt). During the course of the second quarter of 2014, the mining continued in the Nampala pit, for a total of 840,000 excavated metric tons; including 78,000 metric tons of ore at a grade of 0.9 g/t.
The Credit Facility is a related party transaction that was unanimously approved by the independent members of the board of directors of Company. The members of the Cohen family that are also members of the board of directors of Company, abstained to vote on this resolution.
A material change report has concurrently been filed by the Company which is less than 21 days prior to the closing of the financing. This is explained by the immediate cash flow needs of Nampala S.A. which otherwise would have delayed the achievement of the Company's production objectives.
Augustin Rousselet, chief of finances (CFO) and chief of operations (COO) of Company declares: "The obstacles encountered at the Nampala Mine are normal in the context of the final phases of entering into the production phase of the gold elution process. However, since the solutions to these obstacles are well known and available on the market, we will rectify the situation within the next few weeks"
About Robex
Robex is a junior Canadian mining exploration & development company with nine permits located in Mali, western Africa. The shares of Robex are traded in Canada on the TSX Venture Exchange (TSX VENTURE:RBX) and in Germany on the Frankfurt Stock Exchange (Frankfurter Wertpapierbörse) (FRANKFURT:RB4). Mali is currently Africa's third most important gold producing country.
Source: http://robexgold.com/