VANCOUVER, Oct. 7, 2014 /CNW/ - Veris Gold Corp. ("Veris" or the "Company") reports that on October 3, 2014 the Supreme Court of British Columbia made an order (the "DIP Order") authorizing the Company and its subsidiaries to enter into a debtor-in-possession financing agreement ("DIP Agreement") with Wbox 2014-1 Ltd. (the "DIP Lender") pursuant to which an aggregate amount of up to USD$12 million will be available to support the continued operations during the Companies' Creditors Arrangement Act ("CCAA") proceedings. In the Company's proceedings under Chapter 15 of the U.S. Bankruptcy Code (the "US Proceedings"), the DIP Order was recognized and enforced by the United States Bankruptcy Court - District of Nevada pursuant to an order made October 6, 2014 (the "Recognition Order").
Continued protection under the CCAA and the US Proceedings, together with the new financing available under the DIP Agreement will provide the Company with additional time and stability to progress with its restructuring plan under CCAA. The Company continues to operate its gold producing mines and processing plant at Jerritt Canyon located in Elko County, Nevada.
The DIP Agreement is for a six month term with an optional extension period of three additional months and can be drawn on up to four times. The DIP Lender has a super-priority charge over all of the Company assets pursuant to the DIP Order and the Recognition Order.
The Company has been operating under the protection of the CCAA and the U.S. Bankruptcy Code since June 9, 2014.
All inquiries regarding Veris' CCAA proceedings should be directed to the Monitor, Ernst & Young, Inc.: Mr. Rocky Ho at (604) 891-8425. Information about the CCAA proceedings, including copies of all court orders and the Monitor's reports, is available on the Monitor's website: >www.verisgold.com.