Goldrich Mining Enters into Amended Loan Agreement Guaranty and Deed of Trust
SPOKANE, WA – March 25, 2020- Goldrich Mining Company (OTCBB: GRMC) (“Goldrich” or the “Company) announces it has signed an agreement with Nicholas Gallagher (“Gallagher”), a related party and member of the Company’s Board of Directors, in his capacity as Agent (“Agent”) for and on behalf of Gallagher and other lenders (Gallagher and the other lenders collectively, “Holders”). The agreement amends the Senior Secured Note financing previously noted in Goldrich’s new releases dated February 13, 2018 and August 20, 2018.
Goldrich (the “Borrower”) and its wholly-owned subsidiary, Goldrich Placer LLC (the “Guarantor”) and Holders entered into an Amended and Restated Loan, Security, and Intercreditor Agreement (collectively the “Amended 2019 Loan Agreement”), effective as of November 1, 2019 (as amended, supplemented, extended, restated, or otherwise modified from time to time), pursuant to which, in exchange for the secured promissory notes (the “Notes”) and other consideration:
- Holders have loaned to Borrower prior to November 1, 2019, an aggregate principal amount of $3,987,368.49;
- Gallagher has agreed to make additional loans to Borrower from and after November 1, 2019, totaling a maximum principal amount of $394,736.84 (the net proceeds of which to GMC will be $375,000), and
- With the consent of Agent, any new lender or existing Holder may make an additional loan or loans under the Loan Agreement,
Under the Amended 2019 Loan Agreement:
- The Borrower and Holders entered into a Deed of Trust whereunder the Notes are secured by a security interest in all real property, claims, contracts, agreements, leases, permits and the like.
- The Borrower and any Holder may negotiate a separate agreement enabling the Borrower to issue shares to said Holder in satisfaction of some or all interest that may be due to said Holder.
- The Guarantor entered into a Guaranty whereunder the Guarantor unconditionally guarantees and promises to pay to the order of each Holder
- the principal sum of each Note held by such Holder when and as the same becomes due, whether at the stated maturity thereof, by acceleration, call for redemption, tender, or otherwise,
- all Interest payable on each such Note when and as the same becomes due, and
- any other amounts owing by Borrower to such Holder under the Loan Agreement or any other Loan Document when and as the same becomes due.
In an agreement separate from the Amended 2019 Loan Agreement, Goldrich and Mr. Gallagher have negotiated that Mr. Gallagher, at his option, has the right to convert outstanding but unpaid and future interest on his loans into stock of the Company at $0.015 per share.
As a result of this Amended 2019 Loan Agreement, Goldrich secured funds needed for general and administrative functions while the Company seeks financing for exploration for the hard rock gold prospects and formulating a profitable mine plan for the Little Squaw Creek gold mine.
The Amended 2019 Loan Agreement documents have been filed with EDGAR and may be viewed in their entirety on the Goldrich website.
About Goldrich Mining
Goldrich Mining (OTCBB: GRMC) is a U.S. based resource company focused on developing the Chandalar gold district in Alaska, USA. The Company controls a land package spanning 23,000 acres of highly prospective gold targets and historic mines. Goldrich is focused on building shareholder value by monetizing placer assets, generating non-dilutive funds, and working towards building a lode gold mine at Chandalar in addition to the existing placer gold mine already producing on site.
For additional information regarding Goldrich Mining Company or this news release, contact Mr. William Schara via telephone at (509) 768-4468 or This email address is being protected from spambots. You need JavaScript enabled to view it..