Tagish Lake CCAA Plan of Arrangement and Compromise Approved and Tagish Lake Enters Into Credit Agreement With New Pacific
October 27 2010 - 11:11AM
Marketwired
Tagish Lake Gold Corp. (the "Company") (TSX VENTURE: TLG) announced
today that at a meeting of the creditors of the Company held on
October 22, 2010, 100% of the creditors present or represented by
proxy approved the amended Plan of Compromise and Arrangement (the
"Plan of Arrangement") under the Companies' Creditors Arrangement
Act (Canada) (the "CCAA"). Pursuant to the Final Order of the
Supreme Court of British Columbia (the "Court"), the Court has
authorized the implementation of the Plan of Arrangement which will
result in the repayment of all proven claims of creditors against
the Company as determined pursuant to the CCAA proceeding (the
"Proven Claims"). Please see the Company's news release of October
15, 2010 for further details of the CCAA proceeding.
The Company further announces that it has entered into a credit
agreement (the "Credit Agreement") to receive a loan in the
principal amount of up to $8,250,000 (the "Loan") with New Pacific
Metals Corp. ("New Pacific"). New Pacific holds approximately 79.8%
of the issued and outstanding common shares of the Company.
The Plan of Arrangement contemplates that the Company enter into
the Credit Agreement to fund the required payments under the Plan
of Arrangement. In accordance with the Plan of Arrangement, New
Pacific has provided the proceeds of the Loan directly to Grant
Thornton Limited, the monitor appointed under the CCAA proceeding
(the "Monitor"). The Monitor will distribute the proceeds of the
Loan as set out in the Plan of Arrangement, which includes payment
of the Proven Claims.
Pursuant to the terms of the Credit Agreement, New Pacific
agreed to provide a non-revolving credit under which the Company
could borrow by way of a single advance. The amount owing under the
Loan is due and payable on or before October 31, 2011. The interest
for the Loan is the annual rate of interest announced by the Bank
of Montreal being its prime rate plus 7%. As security for its
obligations under the Credit Agreement, the Company has delivered
to New Pacific a registered debenture in the principal amount of up
to $10,000,000 secured by a fixed charge on the Company's assets,
including a charge over the Company's assets with respect to the
Skukum Creek property. No shares of the Company are to be issued in
connection with the Loan.
The Company further announces the re-constitution of its board
of directors. Effective October 26, 2010, Graham C. Dickson, Robert
E. Chafee, Sun Feng, Peter Holbeck, John Resing and Neil Steenberg
have each resigned as directors of the Company and each of Rui
Feng, Jack Austin, Greg Hawkins, David Kong and Joanne Yan have
been appointed as directors of the Company.
This news release may contain forward-looking statements (within
the meaning of applicable securities laws) relating to the Company.
Forward-looking statements are identified by words such as
"believe", "anticipate", "expect", "intend", "plan", "will", "may"
and other similar expressions. This information involves known and
unknown risks, uncertainties and other factors that may cause
actual results or events to differ materially from those
anticipated in such forward-looking information. Forward-looking
information in this news release includes, without limitation,
statements made in respect of the Loan and the Credit Agreement and
the continuity of the CCAA proceedings.
All forward-looking statements in this news release are
qualified by these cautionary statements. Forward-looking
statements involve significant risks and uncertainties, should not
be read as guarantees of future performance or results, should not
be unduly relied upon and will not necessarily be accurate
indications of whether or not such results will be achieved.
Forward-looking information is based on various material factors or
assumptions, which are based on information currently available to
the Company. Although the forward-looking statements contained in
this news release are based upon what management believes are
reasonable assumptions, the Company cannot assure readers that
actual results will be consistent with these forward-looking
statements.
The forward-looking statements contained in this news release
are made as of the date of this news release and should not be
relied upon as representing the Company's views as of any date
subsequent to the date of this news release. The Company assumes no
obligation to update or revise these forward-looking statements to
reflect new information, events, circumstances or otherwise, except
as required by applicable law.
Neither TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
Contacts: Tagish Lake Gold Corp. Rui Feng Director
604-669-9397
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