Carpathian extends Macquarie forbearance to July 31

2014-07-04 12:08 ET - News Release

Mr. Guy Charette reports

CARPATHIAN GOLD INC. PROVIDES CORPORATE UPDATE

Carpathian Gold Inc. has concluded a further extended forbearance and amendment agreement with Macquarie Bank Ltd. The agreement provides for a $5-million (U.S.) increase in the amount of funds made available under third tranche of the project finance facility entered into between Macquarie and the corporation's wholly owned subsidiary, Mineracao Riacho dos Machados Ltda. (MRDM), for a total facility of up to $170-million (U.S.), of which approximately $164.9-million (U.S.) is currently drawn. Under the terms of the agreement, the forbearance expires on July 31, 2014, with repayment of any funds drawn down under the third tranche to be effected by Dec. 31, 2014. There is no assurance that any or all of the funds to be provided to MRDM under the terms of the agreement will actually be made available to it as any disbursements thereof remain solely at Macquarie's discretion, nor is there any assurance that Macquarie will agree to any further extensions of the forbearance.

Carpathian also wishes to announce that Rishi Tibriwal, chief financial officer of the corporation, has left to pursue other opportunities and that Carlos Pinglo has been appointed as his replacement. Mr. Pinglo is an economist with over 20 years of senior management experience, including working as chief financial officer for a number of public companies, as well as in corporate finance, strategic planning, financial reporting, turnarounds, and mergers and acquisitions.