Hello, does anyone know what does today's news mean? It is hard to understand. It seems like a loan with 15% interest for only 3 months?
Anyone can help to explain?
Vancouver, British Columbia CANADA, July 30, 2012 /FSC/ - Sacre-Coeur Minerals Ltd. (SCM - TSX Venture, S5N - FWB), (the "Company") announced today that it has entered into a purchase and sale agreement (the "Purchase Agreement") with Riverside Resources Inc. ("RRI"; TSXV: RRI.V) under which the Company sold to RRI one of its three core drills which is currently surplus to the needs of the Company and has been in storage. The Purchase Agreement provides that the Company can elect to repurchase the core drill from RRI or act as agent to sell the drill to a third party. In either case, the Company shall repay RRI its purchase price plus a premium of 15%. If after 120 days from the effective date of the Purchase Agreement, the Company has not repurchased the core drill or effected a sale to a third party, and if the Company and RRI have not reached other arrangements, RRI shall be entitled to put the drill back to the Company for the purchase price plus a 15% premium thereon. The Company's performance under the Purchase Agreement is secured by a subordinate interest in 51% of the shares of its wholly owned subsidiary company, Sacre-Coeur Guyana, Inc. subject to the standard provisions of rights of redemption under the Personal Property Security Act (British Columbia). The shares pledged in the subsidiary company will be deposited in escrow pending release upon the Company's performance under the terms of the Purchase Agreement. The proceeds from the sale of the drill will be used as working capital for general corporate purposes.