Mr. Francois Marland reports
VERIS GOLD CORP. ADVISES FINANCIAL RESTRUCTURING
Veris Gold Corp. has received a notice of default dated Jan. 28, 2014, from Deutsche Bank AG, London branch (DB), with respect to payment
defaults under the forward gold purchase agreements between the company
The notice of default relates to the failure to make the monthly
December gold delivery, or pay the cash equivalent of the gold delivery
shortfall, for December, 2013, under each of the forward gold purchase
agreements dated Aug. 12, 2011, and the second-lien forward gold
purchase agreement dated as of Feb. 7, 2012, each among DB, and the
company and certain of its affiliates. The two agreements are
described in more detail in the company's news releases dated Aug.
15, 2011, and Feb. 8, 2012.
The company was unable to make the scheduled December, 2013, gold delivery
under each of the two forward gold purchase agreements due to an
electrical accident resulting in a fire that occurred in the primary
crushing building located at the Jerritt Canyon mill operations. The
fire resulted in a temporary suspension of operations, which negatively
affected production during the month of December, 2013. The forward
gold purchase agreements with DB do not contain a force majeure
DB has advised the company that it is considering what actions, if any,
it may wish to make in response to the contract concerning this event.
These actions include an assignment of DB's rights and obligations
under the agreements to a third party or realizing on the security
pledged, being the company's direct and indirect interest in the
Jerritt Canyon mine in Nevada.
DB recently announced the closure and divestiture of its mining loan
portfolio over the next few months; the company has commenced
negotiations with several third parties for the purchase of the
existing DB forward gold loans with restructured and lengthier terms.
The company will announce proposed future refinancing and restructuring
plans concerning capital, debt and strategy in due course.
We seek Safe Harbor.
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