Louvem says it will ask its gold warrant holders to modify the indentures to relieve the default so that the company periodically can adjust its obligations to the reserve fund to take into account the number of gold warrants outstanding.
The company says it has negotiated with holders of more than two-thirds of the gold warrants to allow such amendment to the indenture.
Louvem recently negotiated a deal to sell Cambior Inc. (TSE) a 50% interest in Louvem’s Chimo gold mine near Val d’Or, Que. As part of the deal, Cambior will make Louvem a gold loan worth not more than $6 million with the loan to be secured by Louvem’s remaining 50% interest in the mine.
With the closing of transactions with Cambior and pursuant to other conditions, Louvem says it intends to make an offer for all outstanding gold warrants at a price not exceeding $3 per warrant.
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