Genera Avante Holdings Canada Inc. (GAHC), which holds approximately 62% of the common shares of Shear Wind on a fully diluted basis, has agreed – subject to regulatory approval – to loan up to C$5 million to Shear Wind for required project development expenditures and operating expenses.
The loan will also help advance funds to Shear Wind's wholly owned subsidiary, Vindt Resources Inc., which will use the funds for required project development expenditures in Alberta as well as repayment of Vindt's promissory note with GAHC that was provided in August.
Shear Wind plans to issue an unsecured promissory note to GAHC in the principal amount of C$5 million with an initial draw down of C$3 million. The note shall bear interest at 10% per annum. Fifty percent of the principal drawn on the note, together with interest, shall be due on Dec. 31, 2012 with the remainder due on Dec. 31, 2013.
SOURCE: Shear Wind Inc.