Deutsche Bank Wants the Money Now from Veris Gold

Previously, I wrote about how I was annoyed with the large shareholders of Veris Gold for letting Deutsche Bank jerk them around. Well, now Deutsche Bank wants $90 million from Veris by this Friday. If the company does not pay, DB will start enforcing its rights. So the major shareholders better start writing big checks by Friday or things will get ugly.

VANCOUVER, June 3, 2014 /CNW/ – Veris Gold Corp. (“Veris” or the “Company”) (TSX: VG) (OTCQB: YNGFF) (Frankfurt Xetra Exchange: NG6A) advises that it has received notices of Early Termination Date dated June 3, 2014, from Deutsche Bank AG, London Branch (“DB”), with respect to payment defaults under the two Forward Gold Purchase Agreements between DB and the Company.

Under the Forward Gold Purchase Agreement dated August 12, 2011, the effect of the receipt of the Notice of Early Termination Date is that the Company must make a payment of US$77,239,320.56 by 5 pm PDT on June 9, 2014, failing which payment DB shall take such steps as necessary to enforce its rights against the Company.

Under the Second Lien Forward Gold Purchase Agreement dated February 7, 2012, the effect of the receipt of the Notice of Early Termination Date is that the Company must make a payment of US$12,204,978.98 by 5 pm PDT on June 9, 2014, failing which payment DB shall take such steps as necessary to enforce its rights against the Company.

The two agreements are described in more detail in the Company’s news releases dated August 15, 2011 and February 8, 2012.

The Company’s Restructuring Special Committee is considering the Company’s alternatives with respect to these notices, and will be making recommendations to the Board on an urgent basis.

About Veris Gold Corp.
Veris Gold Corp. is a growing mid-tier North American gold producer in the business of developing and operating gold mines in geo-politically stable jurisdictions. The Company’s primary assets are the permitted and operating Jerritt Canyon processing plant and gold mines located 50 miles north of Elko, Nevada, USA.  The Company’s primary focus is on the re-development of the Jerritt Canyon mining and processing plant.  The Company also holds a portfolio of precious metals properties in British Columbia and the Yukon Territory, Canada, including the Ketza River Property.

Disclosure: None