10:09:31 EDT Fri 29 Mar 2024
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or Name
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CA



Banro Corp (2)
Symbol BAA
Shares Issued 109,757,811
Close 2017-11-20 C$ 0.15
Market Cap C$ 16,463,672
Recent Sedar Documents

Banro takes step toward $4.94M (U.S.) default on notes

2017-12-01 07:23 ET - News Release

An anonymous director reports

BANRO ANNOUNCES EXERCISE OF CONTRACTUAL RIGHT TO DEFER INTEREST PAYMENT ON SECURED NOTES

In accordance with the terms of the indenture governing its 10 per cent secured notes due 2021, Banro Corp. has elected to defer payment of the approximately $4.94-million (U.S.) interest payment due on Dec. 1, 2017.

No event of default will occur under the indenture if the interest payment is made within 30 days of its due date. No event of default will occur under the other material debt obligations of Banro and its subsidiaries as a result of such interest not being paid on Dec. 1, 2017. The company has the right to make the interest payment prior to the expiry of the 30-day grace period. The company will utilize the grace period to continue its continuing discussions with its major stakeholders concerning the possible restructuring of the company's non-DRC debt obligations as well as the provision of financing to support the company's continuing operations in the DRC. There is significant risk that any restructuring of the company's non-DRC debt obligations may result in significant impairment to the value of the equity holders' interests in the company.

Banro continues to face significant operational and financial challenges including short- and long-term liquidity constraints. The company's ability to continue operations in the normal course of business is dependent on several factors, including securing financing for operations and to meet upcoming debt servicing and working capital requirements. In the event the company is unsuccessful in addressing these continuing operational and financial challenges, it may become unable to meet its non-DRC financial obligations as they become due.

The company continues to take all steps necessary to ensure the continuity of its operations in the DRC.

Toronto Stock Exchange listing review

The Toronto Stock Exchange has advised Banro that it has commenced a review with respect to whether Banro continues to meet the requirements for continued listing of its shares on the TSX. A meeting of the continued listing committee of the TSX to consider whether to delist the shares of the company is currently scheduled for Dec. 21, 2017. Trading in the company's shares on the TSX is currently suspended in accordance with the cease trade order issued by the Ontario Securities Commission on Nov. 20, 2017.

About Banro Corp.

Banro is a Canadian gold mining company focused on production from the Twangiza and Namoya mines, which began commercial production in September, 2012, and January, 2016, respectively. The company's longer-term objectives include the development of two additional major, wholly owned gold projects, Lugushwa and Kamituga. The four projects, each of which has a mining licence, are located along the 210-kilometre-long Twangiza-Namoya gold belt in the South Kivu and Maniema provinces of the Democratic Republic of the Congo.

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