On October 15, 2013, the Sweetwater County Commissioners approved the issuance of a $34 million Sweetwater County, State of Wyoming, Taxable Industrial Development Revenue Bond (Lost Creek Project), Series 2013 (the “Sweetwater IDR Bond”) to the State of Wyoming, acting by and through the Wyoming State Treasurer, as purchaser. On October 23, 2013, the Sweetwater IDR Bond was issued and the proceeds were in turn loaned by Sweetwater County to Lost Creek ISR, LLC pursuant to a financing agreement dated October 23, 2013 (the “State Bond Loan”). The State Bond Loan calls for payments of interest at a fixed rate of 5.75% per annum on a quarterly basis commencing January 1, 2014. The principal is payable in 28 quarterly installments commencing January 1, 2015 and continuing through October 1, 2021. The State Bond Loan is collateralized by all of the assets at the Lost Creek Project. As a condition of the financing, the RMBAH First and Second Loan Facilities together with certain construction equipment loans were paid off with the funding proceeds from the State Bond Loan.

 

On June 24, 2013, the Company entered into a $20.0 million First Loan Facility with RMBAH. The initial $20.0 million was drawn and repaid during 2013. An amendment of the First Loan Facility allowed for $5.0 million to be redrawn. This was done on December 19, 2013 for the acquisition of Pathfinder. On March 14, 2014, the loan was amended to change the interest rate, extend the loan maturity date to March 31, 2016, increase the current loan to $6.5 million and provide for an additional line of credit of $3.5 million pending the completion and results of the Technical Report (NI 43-101) on the newly acquired Shirley Basin property. The amended interest rate is approximately 8.75%. Principal payments of $0.81 million are due quarterly commencing on June 30, 2014.

 

Deferred loan fees includes legal fees, commissions, commitment fees and other costs associated with obtaining the various financings. Those fees amortizable within 12 months of March 31, 2014 are considered current assets.

 

The following table lists the current and long term portion of each of the Company’s debt instruments:

 

			As at			As at
			March 31, 2014			December 31, 2013
			$			$
Current debt						-
RMBAH First Loan Facility			3,250			5,000
Insurance premium financing			77			153
Sweetwater County bond			2,004			-
			5,331			5,153
Long term debt
Sweetwater County bond			31,996			34,000
RMBAH First Loan Facility			3,250			-
			35,246			34,000

 

Schedule of payments on outstanding debt as of March 31, 2014:

 

						Nine months
Debt			Total			2014			2015			2016			2017			2018			Subsequent		Maturity
Sweetwater County bond
Principal			34,000			-			4,066			4,305			4,558			4,826			16,245		October 1, 2021
Interest			8,752			1,466			1,810			1,568			1,311			1,039			1,558
RMBAH First Loan Facility
Principal			6,500			2,438			3,250			812			-			-			-		March 31, 2016
Interest			649			381			250			18			-			-			-
Insurance premium financing
Principal			51			51			-			-			-			-			-		May 31, 2014
Interest			-			-			-			-			-			-			-
Total			49,952			4,336			9,376			6,703			5,869			5,865			17,803