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8-K - CAPITAL GOLD CORP | v189994_8k.htm |
EX-10.2 - CAPITAL GOLD CORP | v189994_ex10-2.htm |
EX-10.1 - CAPITAL GOLD CORP | v189994_ex10-1.htm |
EX-99.1 - CAPITAL GOLD CORP | v189994_ex99-1.htm |
PRESS
RELEASE
FOR
IMMEDIATE RELEASE
CAPITAL
GOLD CORPORATION AND STANDARD BANK
AGREE
TO AMEND CREDIT AGREEMENT
NEW YORK,
July 7, 2010 - Capital Gold Corporation (NYSE AMEX:CGC; TSX:CGC) announced that
yesterday it closed a First Amended and Restated Credit Agreement with Standard
Bank Plc., which will increase the Company’s previous line of
credit.
The
Amended Credit Agreement amends and restates the prior credit agreement between
the parties dated July 17, 2008 (the “Credit Agreement”). The Credit
Agreement was further amended to increase the aggregate principal of the senior
secured revolving credit facility from U.S. $5,000,000 to $7,500,000. Amounts
borrowed under the Revolving Facility bear interest at a rate per annum equal to
the LIBO Rate, as defined in the Credit Agreement, for the applicable interest
period plus the applicable margin. The applicable margin for the
Revolving Facility is 3.0% per annum. The Borrowers are to use the
proceeds of the Revolving Facility to fund general corporate and working capital
requirements in connection with the El Chanate gold mining project and the Saric
gold exploration project.
Capital
Gold’s Chairman, Stephen M. Cooper, said, “We are pleased to be continuing our
relationship with Standard Bank, which will be instrumental to our future
growth. We started working with Standard Bank when we began the El Chanate
project, and we look forward to maintaining this long and productive
relationship as we move ahead to achieve our objectives."
Ted
Kavanagh, Director of Standard Americas, Inc., (a member company of the Standard
Bank Group Limited) in New York, said “The El Chanate mine has surpassed
expectations since it began gold production in 2007. We are pleased
to continue our relationship with Capital Gold as it grows its business in
northern Mexico.”
For more
detailed information on the Amended Credit Agreement, please see the disclosure
in our Current Report on Form 8-K filed with the Securities and Exchange
Commission on July 6, 2010.
About Capital
Gold
Capital
Gold Corporation (CGC) is a gold production and exploration
company. Through its Mexican subsidiaries and affiliates, it owns 100% of
the “El Chanate” gold mine located near the town of Caborca in Sonora,
Mexico. It also owns and leases mineral concessions near the town of Saric,
also in Sonora, that are undergoing preliminary exploration for gold
and silver mineralization. Additional information about Capital Gold
and the El Chanate Gold Mine is available on the Company’s website,
www.capitalgoldcorp.com.
About Standard
Bank
Standard
Bank is a leading African banking group focused on emerging markets
globally. It has been a mainstay of South Africa's financial system
for over 145 years, and now spans 17 countries across the African
continent. Its international expansion has taken it to 16 countries
outside Africa including Brazil, Russia and China. Its headquarters
are in Johannesburg and it is listed on the Johannesburg Stock
Exchange. Standard Bank's Corporate and Investment Banking division
is a leading global emerging markets corporate and investment bank and offers
its clients banking, trading, investment, risk management and advisory services
in developing economies throughout the world. It has specific
sector expertise in industries relevant to its global footprint, with strong
sector value propositions in: mining & metals; oil, gas & renewables;
telecommunications & media; power & infrastructure and financial
institutions.
Standard
Bank Plc in London is the bank's principal international
subsidiary. It is authorised and regulated by the Financial Services
Authority, and is a member of the London Stock Exchange, the London Bullion
Market Association, the London Metal Exchange, the London Platinum and Palladium
Market and the New York Mercantile Exchange (COMEX Division).
For
further information visit: www.standardbank.com/cib.
###
Statements
in this press release, other than statements of historical information, are
forward-looking statements within the meaning of the Private Securities
Litigation Reform Act of 1995. Investors are cautioned that forward-looking
statements are inherently uncertain. Actual performance and results may differ
materially from those projected or suggested due to certain risks and
uncertainties, some of which are described below. Such forward-looking
statements include comments regarding a national stock exchange listing and
future growth of the company. Factors that could cause actual results to differ
materially include timing of and unexpected events during construction,
expansion and start-up; variations in ore grade, strip ratio, tonnes mined,
crushed or milled; delay or failure to receive board, national exchange or
government approvals; the availability of adequate water supplies; mining or
processing issues, and fluctuations in gold price and costs. There can be no
assurance that future developments affecting the Company will be those
anticipated by management.
Any
forecasts contained in this press release constitute management’s current
estimates, as of the date of this press release, with respect to the matters
covered thereby. We expect that these estimates will change as new information
is received and that actual results will vary from these estimates, possibly by
material amounts. While we may elect to update these estimates at any time, we
do not undertake to update any estimate at any particular time or in response to
any particular event. Investors and others should not assume that any forecasts
in this press release represent management’s estimate as of any date other than
the date of this press release.
Additional
information concerning certain risks and uncertainties that could cause actual,
results to differ materially from that projected or suggested is contained in
the Company’s filings with the Securities and Exchange Commission (SEC) over the
past 12 months, copies of which are available from the SEC or may be obtained
upon request from the Company.
Contact:
Kelly
Cody, Investor Relations Manager
Capital
Gold Corporation
Tel:
(212) 344-2785
Fax:
(212) 344-4537
Email:
kelly@capitalgoldcorp.com