White Tiger Announces Closing of Unique Loan Transactions
TORONTO, ONTARIO -- (Marketwire) -- 08/22/12 -- Further to its July 4, 2012 press release, White Tiger Gold Ltd. (the "Company") (TSX: WTG) announces that it has closed its proposed Loan Transactions (as defined below) with Unique Goals International Ltd ("Unique"). Unique is a company beneficially owned, directly or indirectly, by Mr. Sergey Yanchukov, a creditor and shareholder of the Company.
The Company owed Unique $20,401,001.30 (including accrued interest) (the "Unique Loans") as at July 31, 2012, which loans matured in May 2012 and bore interest at a rate of 15% per annum.
The Company and Unique have entered into a new loan agreement which consolidates the Unique Loans (the "Consolidated Loan"), extends the maturity date to January 31, 2015, and provides for the issuance of 204,010,013 common share purchase warrants (each, a "Warrant") to Unique (the "Loan Transactions"). The Warrants that have been issued to Unique in connection with the Loan Transactions are exercisable to acquire common shares of the Company (each, a "Common Share"), at a price of $0.10 per share, for a period of four years from the date of issuance. The Consolidated Loan bears interest at a rate of 15% per annum, with interest and principal payable in cash at maturity.
In accordance with Section 604(d) of the Toronto Stock Exchange Company Manual, the Company sought and obtained shareholder approval for the Loan Transactions by way of written consent of selected shareholders holding more than 50% of the issued and outstanding Common Shares, excluding the shares beneficially owned, directly or indirectly, by Mr. Yanchukov.
Following the closing of the Loan Transactions, Mr. Yanchukov beneficially owns and/or exercises control or direction over 69,599,837 Common Shares and 207,647,216 warrants. This represents approximately 17.0% of the issued and outstanding Common Shares on an undiluted basis (or 277,247,053 Common Shares or approximately 45.0% on a partially diluted basis, assuming exercise of the 207,647,216 warrants held by Mr. Yanchukov).
About White Tiger
The Company is a TSX-listed mining and exploration company, focused on the development of mineral resources in the Russian Federation.