SALT clarifies baseball tickets LAKE CITY, ian stewart autographed baseball understand UTAH, Jun 26 (MARKET WIRE) -- Palladon Ventures Ltd. ("Palladon" or the "Company") (TSX VENTURE: PLL)(FRANKFURT: PV-1) announced today that the Company has executed anagreement (the "Extension Agreement") with Luxor Capital Group, LP("Luxor"), to extend the term of the Company's two loans payable to Luxorin the current aggregate amount (including principal and accruedinterest) of approximately US$37 million (the "Luxor Loans"), which loanswere otherwise payable in full on June 26, 2009. The Company is currentlyseeking TSX Venture Exchange approval of the Extension Agreement, theprimary terms of which are described below.The Extension Agreement anticipates two extension periods. The firstextension period is to October 15, 2009 ("First Extension Period"), whilea second extension to December 31, 2010 ("Second Extension Period") iscontingent on the Company raising funds (the "Interim Financing") of noless than US$5,000,000 during the First Extension Period.
The Companywill pay-in-kind interest accruing during the extension periods at 12.5%per annum, thus preserving cash and providing Palladon flexibility tofund operations rockies blankets . In connection with the First Extension Period, theCompany has agreed to pay additional interest of US$500,000, which willbe added to the principal amount of the Luxor Term Loan, and would bepayable in cash out of the Interim Financing.During the First Extension Period, the Company will endeavor to completethe Interim Financing to fund operations, advance feasibility studies foriron concentrate and alternate iron products (DRI, pig iron or ironnuggets), and potentially repay a portion or all of the Luxor Loans photos world series fan . TheCompany will attempt to raise a minimum of US$5 million in the InterimFinancing, which is anticipated to fully fund operations through the endof 2010 coors field baseball . Palladon will also continue discussions with strategic andfinancial investors regarding larger funding options to refinance andrepay the Luxor Loans, as well as to advance its concentrate andalternate iron production projects.If Palladon raises a minimum of US$5 million of equity capital prior toOctober 15, 2009 and if certain other conditions have been met, then thedue date on the Luxor Loans will be extended, without further action byany party, to December 31, 2010 rocky mountains . Upon the closing of the InterimFinancing and commencement of the Second Extension Period, Palladon willbe obligated to pay additional interest to Luxor in the amount ofUS$1,750,000 (assuming the Luxor Loans have not been paid in full),payable by the issuance to Luxor of shares of Palladon's common stock atthe per share price at which Palladon's common stock is issued or deemedto have been issued in the Interim Financing, provided that in no eventshall any such shares issued exceed 5% of Palladon's total sharesoutstanding after giving effect for the Interim Financing. Additionally, during the Second Extension Period, if the Luxor Loanscontinue to be outstanding, Palladon will issue to Luxor on each ofDecember 31, 2009, March 31, 2010, June 30, 2010 and September 30, 2010common shares in an amount equal to a maximum of 3% of the then totaloutstanding shares of Palladon's common stock. If the Company repays theLuxor Loans prior to the vesting dates, any future stock grantobligations would terminate.Luxor has also agreed that after sixty five percent (65%) of the totalamounts payable on the Luxor Loans has been paid in cash, at theCompany's option, the balance of the Luxor Loans can be converted intoPalladon common equity at the most recent share price used to refinancethe Luxor Loans, provided that the amount raised in such financing is atleast US$10 million and other conditions have been met.
Other terms andconditions are included in the Extension Agreement.Commenting on the Agreement, CEO John Cutler stated, "We are very pleasedto have reached this Agreement with Luxor rockys baseball . They understand the potentialfor this project and have demonstrated a commitment to work with theCompany to advance its efforts The first extension will allow SRKConsulting (U.S.), Inc ian stewart autographed baseball . ("SRK") to continue its work which will allow theCompany to accelerate discussions involving near-term financing andstrategic options for the project." An important milestone in the near term will be the filing of a NI 43-101compliant Preliminary Economic Assessment Report, including a resourcestatement photos world series fan . Recent and ongoing confirmation drilling at Comstock/MountainLion and stockpiles on the property is anticipated to allow SRK to bringportions of Palladon's iron ore resource into compliance with CanadianInstitute of Mining, Metallurgy and Petroleum ("CIM") guidelines . TheSecond Extension Period, if exercised, would allow the Company time tocomplete a bankable feasibility study for the project and to continueproving up additional resources.
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