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Plato Gold Extends Defaulted Promissory Notes, Board Member Dies
The junior miner extended two promissory notes totaling C$1.57 million after a payment default, while also announcing the death of director Ernie Marcotte.
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Plato Gold Corp. extended the maturity of two defaulted promissory notes to February 2027, waiving the payment default and avoiding a 10% default rate, the company said in a filing. The notes, totaling C$1.57 million, matured June 10 and were not repaid. The lenders waived the default and any related higher interest through Aug. 19.
One of the notes, for C$1.5 million, is held by a corporation controlled by Plato's president and a director, making the extension a related-party transaction. The disinterested directors approved the amendment, citing the same terms as an arm's-length loan extension and the benefit of the default-rate waiver. The company said it will file a material change report, though not within the standard 21-day period because the terms were finalized shortly before execution.
The second note, for C$69,050, is held by Paul Lhotka. Both notes remain unsecured, bear 7% interest, and are not convertible into securities.