Yoho Extends Short-Term Loan Facility and Issue of Warrants

Yoho Resources Inc. has entered into an agreement with the private lender under Yoho's short-term loan facility to extend the maturity date of the loan from January 3, 2008 to January 3, 2009.

Currently, $5 million of the original $6 million is drawn under this facility. This loan facility was entered into on December 29, 2006 and was extended to mature on January 3, 2008. The proceeds of the loan were used in December 2006 to partially fund Yoho's purchase of properties in northeast British Columbia. The loan bears interest at bank prime rate plus 2%, is repayable in full by Yoho at any time without penalty and is fully subordinated to Yoho's lending facility with the National Bank of Canada.

In connection with the extension of the maturity date of the loan, Yoho has agreed to issue to the private lender an aggregate of 500,000 common share purchase warrants (the "Warrants"), each Warrant entitling the lender to purchase one common share of the Corporation issued on a "flow-through" basis pursuant to the provisions of the Income Tax Act (Canada) (the "Flow-Through Shares") at a price of $2.75 per Flow-Through Share on or before June 30, 2008. The Warrants, and the common shares issuable on exercise thereof, are subject to a hold period of four months and a day from the date hereof.


Our Privacy Pledge

Most Popular Articles

Brent Crude Oil : $52.67/BBL 1.91%
Light Crude Oil : $51.6/BBL 2.60%
Natural Gas : $3.17/MMBtu 2.76%
Updated in last 24 hours