North American Tungsten Corporation Ltd. announced the completion of an $11.0 million loan with Callidus Capital Corporation. The Callidus Loan is for a term of one year, repayable on demand and bears interest at 18% per annum with interest payable monthly. Principal repayments of $150,000 per month commence on July 31, 2014, with the remaining balance due at maturity.

The Callidus Loan is secured by a first charge over substantially all assets of the company, excluding the Mactung Project and all mining and mineral leases, claims and tenures related thereto. In December 2013, the company announced that it had extended its $12.0 million operating loan facility and its $12.0 million working capital loan facility with HSBC Bank Canada to June 30, 2014. $5.8 million of the proceeds from the Callidus Loan were used to repay the outstanding balance of the Operating Loan Facility, which has been cancelled.

Upon repayment, HSBC will discharge the security it held relating to the company. $1.0 million of the proceeds from the Callidus Loan were used to repay certain equipment loans and capital leases and the remainder is available for working capital and investment in capital projects. The company paid to Callidus a non-refundable facility fee of 1% of the Callidus Loan, being $110,000.

In addition, the company paid a finder's fee of $75,000 in connection with the Callidus Loan. The company is reviewing alternatives for refinancing the Working Capital Loan. As previously announced, a director of the company and HSBC have a Put Agreement that allows HSBC to put the outstanding balance under the Working Capital Loan to the Sponsor.

The company has entered into an agreement with the Sponsor providing that, if the Working Capital Loan is put to the sponsor by HSBC, then: (a) the maturity date of the Working Capital Loan will be extend to no earlier than April 1, 2015; (b) the interest rate applicable to the Working Capital Loan shall be 12% per annum; and (c) the company will pay the Sponsor a $100,000 fee on account of his costs and expenses related to the assignment of the Working Capital Loan.