Lachlan Star Limited
TSX : LSA
ASX : LSA

Lachlan Star Limited

July 02, 2014 17:48 ET

Lachlan Star Announces Renegotiation of Credit Facility

PERTH, WESTERN AUSTRALIA--(Marketwired - July 2, 2014) -

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Gold miner, Lachlan Star Limited ("Lachlan Star" or the "Company") (TSX:LSA)(ASX:LSA) is pleased to announce that it has renegotiated its remaining CDN$3.75 million Credit Facility ("Facility") with Sprott Resource lending Partnership ("Sprott") effective 30 June 2014.

The terms of the renegotiation include the conversion of the Facility to a Gold Loan resulting in the removal of a both a CDN$1 million bullet payment due by 30 September 2014 as well as the final principal repayment of CDN$2.44 million due on 19 February 2015. Monthly principal and interest payments will be replaced by a monthly Gold Loan payment based on a fixed number of gold ounces multiplied by the monthly closing gold price. The term of the Gold Loan has been extended to 31 October 2016. As a consequence approximately $1.8 million of the Company's borrowings will be converted from current to non-current liabilities.

For and on behalf of the Board

Scott Perry, Chairman

To view the full announcement please click the link below: http://www.lachlanstar.com.au/images/RenegotiationCredit_Facility_010714.pdf

ABN: 88 000 759 535

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