3rd Nov 2015 10:06
LONDON (Alliance News) - Arian Silver Corp on Tuesday said it has received a default notice under its agreements with Quintana San Jose Streaming Co LLC and Quintana ACQ Holding Co LLC.
The pair are still holding financing talks following Arian, the Mexico-focused silver mining, having said last week that the loan note amendment it was seeking to reach with Quintana will be terminated.
Arian had signed a letter of intent with Quintana to amend its loan note agreement in order to provide the company with around USD10.0 million in extra funding. Last week, however, Arian said Quintana has issued notice that it intends to terminate its letter of intent with Arian.
As a result, Arian said it now has "very limited" working capital and, until a revised financing arrangement can be agreed, there is a "material uncertainty" about its financial position.
Arian shares were up 0.4% to 1.004 pence on Tuesday.
By Sam Unsted; [email protected]; @SamUAtAlliance
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