Ram Power announces Corporate Credit Facility Amendment providing for Payment-in-Kind of Interest and Fees

Ram Power amended (the “Amendment”) its corporate credit facility (“Credit Facility”) with Sprott Resource Lending Partnership, Exploration Capital Partners 2008 Limited Partnership and Newberry International Holdings Ltd. (collectively, the “Lenders”) to provide for the payment-in-kind of interest and fees thereunder for six months through the issuance of the Company’s common stock (“Common Stock”). This six-month period begins in December 2012 and runs through May 2013. The total amount of interest and fees payable under the Credit Facility during this six-month period is US$4 million.

Under the Amendment, the December 2012 interest payment of US$500,000 and the February 2013 fee payment of US$1 million will be paid through the issuance of 6,301,914 shares of Common Stock on December 28, 2012. The interest payable under the Credit Facility in each of the months of January, February, March, April and May 2013 will be paid on each monthly interest payment date by the issuance of Common Stock at a price of Cdn$0.251 per share (or if the market price of the Common Stock exceeds Cdn$0.3133, at a price of Cdn$0.2350 plus three-quarters (3/4s) of the excess of such market price over Cdn$0.3133). In each such month, the Lenders may elect to receive the monthly interest payment in cash rather than Common Stock by notice to the Company no later than three business days prior to the interest payment date in such month.

Source: Ram Power

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