Gamma Resources revises loan repayment terms

Executive Summary

• Gamma Resources Ltd. renegotiated its existing $1.15 M promissory note, securing a more flexible repayment schedule and potential equity conversion rights.
• The revised schedule spreads $1.2 B in payments from Dec 2025 through Sept 2026, with immediate cash payments tied to upcoming equity financing tranches.
• Lenders expressed confidence in Gamma’s uranium development plans, enhancing the company’s ability to raise capital and advance its projects.

Key Details

• Original note (issued Aug 2 2022): $1.15 M principal, 5% interest, $150 K original issue discount; net proceeds $975 K.
• Current outstanding balance: $1,106,641.
• Immediate good‑faith payments:
• $200,000 cash paid upon closing of first equity financing tranche (already paid).
• $100,000 cash payable upon closing of second equity financing tranche.
• Revised repayment schedule:
• $250,000 by Dec 31 2025
• $250,000 by Mar 31 2026
• $350,000 by Jun 30 2026
• $350,000 by Sept 30 2026 (early settlement permitted).
• Lenders may convert a portion of the note to equity at future dates, subject to mutually agreed terms.
• The flexibility is intended to align debt service with Gamma’s upcoming uranium asset development initiatives and potential capital raises.
• Company assets supporting repayment: cash on hand, lease‑to‑acquire agreements for two advanced uranium projects (Utah & New Mexico), proprietary rare‑earth processing technology, equity/royalty interests in ACDC Metals Ltd., and other reviewable value sources.

Notable Quotes

“We are very pleased to have reached amended terms that provide Gamma with the flexibility needed to advance our uranium asset development plans while remaining committed to meeting our obligations.” – Gabriel Alonso‑Mendoza, President & CEO, Gamma Resources Ltd.