Geoinformatics Exploration Inc.

Geoinformatics Exploration Inc.

April 05, 2007 14:11 ET

Geoinformatics Closes Second Tranche of Convertible Loan Facility

TORONTO, ONTARIO--(CCNMatthews - April 5, 2007) - Geoinformatics Exploration Inc. (TSX VENTURE:GXL) ("Geoinformatics" or the "Company") announced today that it has completed the drawdown of the second tranche of US$10 million under the previously announced long-term US$20 million convertible loan facility (the "Convertible Facility") with Geologic Resource Fund LP ("GRF"). GRF is managed by Geologic Resources Partners LLC, a related party to Geoinformatics, which, together with its affiliates, hold a 25.4% common equity interest in Geoinformatics.

Advances under the Convertible Facility bear interest at 5% per annum and can be converted into common shares of Geoinformatics at the option of GRF at a conversion rate of $0.25 per share until August 28, 2008 and thereafter at a conversion rate of $0.275 per share. In limited circumstances, the Company may require conversion of a portion of the amount drawn under the Convertible Facility at the prevailing conversion price. The Convertible Facility will mature on August 28, 2009.

Geoinformatics will pay a commitment fee of 5% per annum in respect of the funds available under the second tranche of the Convertible Facility for the period January 1, 2007 to April 3, 2007 in the amount of US$126,027 payable on June 30, 2007. Geoinformatics has the option of paying both interest and the commitment fee in either cash or shares, with the effective issue price of the shares equal to the average closing price of the Company's shares for the 20 trading days ending 5 business days prior to such payment date.

Proceeds from the second drawdown of US$10 million will be used to fund the Company's obligations under the Master Strategic Alliance Agreement entered into with Kennecott Exploration Company and for general working capital purposes.

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.

Contact Information

  • Geoinformatics Exploration Inc.
    Ms. Petra Decher
    President and CFO
    (416) 861-1300 x225
    Geoinformatics Exploration Inc.
    Dr. Nick Archibald
    Executive Vice-Chairman and CEO
    (416) 861-1300 x224
    Geoinformatics Exploration Inc.
    330 Bay Street, Suite 1109
    Toronto, ON M5H 2S8
    (416) 861-1300
    (416) 861-1999 (FAX)