Shares in mining group Lydian International Ltd (TSE:LYD) (OTCMKTS:LYDIF) ticked higher Tuesday as it said it had struck a second amended and restated forbearance agreement with its creditors.
The agreement is required due to the reported illegal blockades, which have prevented the firm and its contractors from entering its Amulsar project site in Armenia.
Shares added around 3.5% in Toronto to stand at C$0.15.
The company’s senior lenders, stream financing providers and equipment financiers have agreed to continue to temporarily suspend all principal and interest payments due and payable.
They also continue to 'forbear' from declaring or acting upon, or exercising default-related rights or remedies under such creditor’s financing agreement with respect to certain events of default, in each case, until the earlier of: (a) September 30, 2019, (b) the occurrence of an additional event of default under such creditor’s financing agreement, or (c) any breach by Lydian of the forbearance agreement, the company said in a regulatory statement.
As part of the agreement, Lydian will issue over 23 million warrants to AB Svensk Exportkredit and over 4.7 million warrants following separate warrant certificates, which, if exercised, would represent 3.5% of Lydian shares.
Orion CO IV (ED), Resource Capital Fund VI and Osisko Bermuda have also agreed to extend the availability period and the maturity date under Lydian's existing credit agreement through an amendment.
Amulsar is set to be a large-scale, low-cost operation with gold production targeted to average 225,000 ounces annually over an initial 10 year mine life.