Interim DIP Financing Approved for WestMountain Gold, Inc.
March 05, 2017 at 11:00 pm EST
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The US Bankruptcy Court gave an order to WestMountain Gold, Inc. to obtain DIP financing on an interim basis on March 6, 2017. As per the order, the debtor has been authorized to obtain a Line of credit facility in the amount of $0.15 million out of a total of $1 million, from BOCO Investments, LLC. The DIP loan would carry an interest rate of 8% p.a., and a higher interest rate of 14% p.a. in the event of default. The DIP facility would mature either in one year or in the event of Plan confirmation or in the event of default or conversion of the case to Chapter 7, whichever is earlier. Adequate protection would be provided to the DIP lenders in the form of super-priority administrative expense claims which is subject to unpaid professional fees / administrative expenses, and senior lien upon the debtor’s real and personal property assets. The proceeds of DIP financing would be used towards ongoing administrative and operational expenses and payroll obligations.
WestMountain Gold, Inc. is an exploration stage mining company. The Company, through its wholly owned subsidiary, Terra Gold Corporation (TGC), is focused on exploration at a gold system project in the state of Alaska (the TMC Project). The TMC Project consists of approximately 339 Alaska state mining claims plus an additional five unpatented lode mining claims held under the lease covering approximately 86 square miles (55,040 acres). The property is centered on a five-mile-long trend of gold vein occurrences. The property lies approximately 120 miles west-northwest of Anchorage and is accessible via helicopter or fixed-wing aircraft. The property has an aircraft runway, haul roads, a mill facility and adjoining camp infrastructure, a tailings pond and other infrastructure. The remote camp is powered by diesel-powered generators and water is supplied to the mill by spring-fed sources and a water well.
WESTMOUNTAIN GOLD, INC. 
