Verso Corp (VRS-N) Quote


Closing on $1.8M of new Debt Financing arranged with a leading Canadian, non-bank lender.Debt Financing to fund the Orillia Purchase Price and close out the inherited second mortgage on Bobcaygeon.

TORONTO, ON / ACCESSWIRE / March 5, 2020 / Rogue Resources Inc. (TSXV:RRS.VN) (“Rogue” or the “Company”) is pleased to announce it has closed on its previously announced $1.8M of new Debt Financing (see press release dated February 25, 2020) and is now on track to acquire 100% of the Speiran Quarry (east of Orillia, Ontario), also referred to as “Orillia Quarry”. This acquisition will be Rogue’s second operating quarry in its Limestone business, referred to as “Rogue Stone”.

Rogue closed on the debt financing with a leading Canadian, non-bank lender (the “Credit Group”) for a $1.8M term loan (the “New Term Facility”), to be secured against Orillia and the Company’s remaining assets. The New Term Facility has a 12 month term, extendable to 18 months, with interest-only payments until the principal is due in full at maturity and is subject to an existing general security agreement with the Credit Group. The New Term Facility carries an interest rate equal to the higher of prime plus 8.05% or 12%. In addition, Rogue has issued the Credit Group 2,250,000 bonus shares, equal to 10% of the New Term Facility pending the TSX Venture Exchange’s (“TSXV”) approval. Rogue immediately drew the full $1.8M loan amount.

Part of the New Term Facility will facilitate Rogue’s acquisition of the Orillia Quarry (see further detail in the November 21, 2019 news release). Rogue Stone intends to begin production and initiate sales from the Orillia Quarry later this month.

“Between this project debt and the lending from a leading Equipment Finance Group, that we announced yesterday (see press release dated March 4, 2020), Rogue Stone has completed large pieces of the financing required to begin making Rogue Stone a predictable and profitable business”, said Sean Samson, President and CEO of Rogue. “This lets us acquire the Orillia Quarry through less dilutive means and, with the Cat fleet, begin to equip and staff both quarries appropriately.”

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