Long-term debt

9 Months Ended

Sep. 30, 2014

Long-term debt [Text Block]

6. Long-term debt

(a) Capital leases and note payable :

At September 30, 2014 and December 31, 2013, the balance of the Company’s note payable and capital lease obligations were as follows:

		September 30,			Dec. 31,
		2014			2013
Capital leases and note payable	$	4,846		$	1,289
Less current portion		(1,917	)		(925	)
Long-term portion	$	2,929		$	364

The Company entered into a new note payable in August 2014. The amount borrowed was $5 million with a 30 month term and a 6.25% interest rate. Monthly principal and interest payments are $0.2 million ($2.2 million annually). The note is collateralized by certain equipment at the Troy Mine. The Company used a portion of the proceeds to pay off the two remaining capital leases which principal balances were approximately $0.4 million.

(b) Revolving credit facility:

On December 10, 2011, the Company entered into a revolving credit agreement with Societe Generale. No funds were drawn under the facility. In August 2014, the Company and Societe Generale mutually agreed to terminate this credit agreement. During the three months ended March 31, 2013, the Company expensed the remaining unamortized deferred loan fee balance of $0.6 million, which is included in interest expense. No expenses were incurred against this credit facility during the nine months ended September 30, 2014. There is no assurance that this credit facility will be renewed.