Carpathian Gold (T.CPN) CFO exits stage left on forbearance extension and shares dump 14%

Gaalen Engen Gaalen Engen, Stockhouse.com
7 Comments| July 4, 2014


Carpathian Gold (TSX:CPN, Stock Forum) is behind the eight-ball at its RDM Gold Mine which it only was able to begin re-commissioning on at the end of April after a series of operational and licensing delays that cost the company dearly.

 

It has managed to stay afloat by repeatedly approaching its lender, Macquarie Bank, for extensions on forbearance and increases to its credit facility. Luckily, Macquarie has so far complied with the company's requests and kept it from shutting its doors.

 

Even though the mine is now operational, the company stated that it would require further funding until RDM becomes self-sustaining on a cash flow basis and reaches the company's target of 8,000 ounces of gold per month.

 

According to today's announcement, the company was able to secure another stay of execution from Macquarie as it concluded yet another forbearance extension and a US$5.0 million increase in funding made available under Tranche 3 of the project finance facility bringing the total facility to US$170.0 million.

 

The forbearance expires on July 31, 2014 and re-payment of funds under Tranche 3 will be effected by December 31, 2014, but the company was quick to note that there are no assurances that any or all of the funds to be provided to MRDM under this agreement will actually be made available to it as the disbursements remain solely at Macquarie's discretion.

 

It should also be noted that there are no assurances that Macquarie will continue throwing money at the project or agree to any further forbearances.

 

In other news the company announced the departure of Rishi Tibriwal as company CFO so that Mr. Tibriwal may pursue other interests. Carlos Pinglo will replace Rishi as the new CFO. Some bullboard posters linked the CFO departure to the Macquarie deal.

 

Stock prices as they are and if the company follows through on its production targets, Carpathian may once again see blue skies, leaving investors with a perfect opportunity to get in on the ground floor, but only time will tell.

 

Carpathian was in the news recently when the company announced it would be delaying its annual and general meeting following a late-filing of required annual filings.

 

Shares slipped 14.29% on the news to $0.03 per share.

 

Currently there are 694.2m outstanding shares with a market cap of $20.8 million.


Tags: GOLD

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ChungasRevenge
bankruptcy soon
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July 6, 2014
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sancab
http://www.stockhouse.com/news/press-releases/2014/07/08/carpathian-gold-inc-operations-update-on-the-rdm-gold-mine
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July 8, 2014
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BaystreetBenny
Watch RPX Just Raised $3M @ $0.055 a few weeks ago....Traded Million @ $0.015..Crazy ! Drills programs Underway....Drills Turning on Massive VMS property Near KIDD Mine Area Near Timmins ONT
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July 6, 2014
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geezer21
To update my last response. A delayed market reports shows that after trading a little over 12 million shares Carpathian ended even for the day at $0.035 when the majority of trades at the end of the day went through at $0.035.
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July 4, 2014
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geezer21
Your information is incorrect. At closing Carpathian was down 7.14% and not 14% and that was only on two small trades in the last minutes of trading. A majority of trades were going through at $0.035 for no change despite the high voloume of trading. It should be noted that on a quiet day on the TSX due to the markets being closed on the July 4th holiday in the U.S. Carpathian's volume greatly outpaced all other issues. Despite the high volume of over 10 million Carpathian shar...
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July 4, 2014
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sancab
Look at the glass half full pls. Cpn is up 60% from 2.5c As well your post only talks about slump! Why the negative approach. Positives are, CPN is now 8 days from 120th day of production..! Production updates are imminent...!
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July 4, 2014
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sancab
I think you missed this PR.. [url]http://www.stockhouse.com/news/press-releases/2014/07/08/carpathian-gold-inc-operations-update-on-the-rdm-gold-mine[\url]
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July 8, 2014
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