Long Term Borrowings

9 Months Ended

Sep. 30, 2018

6.	LONG-TERM BORROWINGS

	September 30,		As at December 31,
	2018 $		2017 $
Current portion of long-term borrowings
Promissory note		132		130
Obligation under finance leases		41		48
Accrued interest		69	-
		243		178
Long-term borrowings
Promissory note		603		703
Credit facility		9,909	-
Obligation under finance leases		42		48
		10,553		751
		10,796		929

Credit Facility

In the quarter ended September 30, 2018, the Company received $10,000 (net of $91 of financing costs) from its drawdowns of the $205 million credit facility (Note 7). The credit facility has a term of six years from each draw down, with an interest rate of 8.0% for the first three years that increases to 8.5% in year four, 9.0% in year five and 9.5% in year six. Note 15.

Promissory Note

In July 2013, the Company purchased an industrial complex in the City of Fernley, Nevada, to be the production site for its organoclay plant.

The property was purchased for $1,575, of which $236 was paid at the close of the transaction, and the remaining balance of $1,339 was financed by the seller with a ten-year promissory note payable in monthly instalments. The promissory note bears 7% annual interest. Security provided for the promissory note includes a mortgage charge against the purchased property.