Dianor Resources entered into a mortgage forbearance agreement with its lenders on the surface rights for the Leadbetter diamond property. Dianor secured the original agreement in October 2008 and has since paid $2.55 million against a mortgage of $5 million. The balance of the mortgage to be paid under this agreement is $2.45 million plus accruing interest and other fees.
A forbearance agreement was also signed with Third Eye Capital Inc. for the payment of almost $1.3 million plus accruing interest and other fees arising from the $10 million credit facility entered into in August 2010.
Dianor signed a term letter for a $5 million on March 2 for a secured bridge loan with a U.S. entity. That loan will be structured for a one- to three-year period at 12 percent interest only, with two points paid to the lender at closing as an administration fee. Subject to successful due diligence on the part of the lender, completion of this loan will allow Dianor to pay off senior debt as per the forbearance agreements. Dianor is actively pursuing other funding opportunities to finance the planned 50,000-tonne bulk sample of its Leadbetter diamond deposit.