Alberta · CCAA
Affidavit of Daniel Klemke, Sworn on the 6th Day of December, 2024
Affidavit · 6 December 2024
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What we verified from this filing4 verified
- secured creditorsnote: Total Syndicate Debt comprised of Operating Line $19,800,000; CapEx Line $4,754,015; Term Debt $79,762,241. Company had not drawn on deferred Term Debt portion or delayed draw facility. Subsequent Notices of Default issued Nov 18, 2024 and Dec 2, 2024 citing Financial Covenant breaches and a Borrowing Base Shortfall of at least $2,344,204 as at Oct 31, 2024. · page: 6 · as of: 2024-10-31 · amount: 104316256 · debtor: KMC Mining Corporation · creditor: Syndicate of Lenders (ATB Financial, Canadian Western Bank, Export Development Canada, Laurentian Bank of Canada) led by ATB Financial · currency: CAD · security: General Security Agreement - first ranking security interest in all present and after-acquired personal property of KMC, pursuant to Syndicate Credit Agreement dated August 13, 2024
- secured creditorsnote: Related party - private charitable foundation associated with the Klemke family; affiant Daniel Klemke is Executive Chairman and sole Director of KMC. Debt pursuant to Amended and Restated Promissory Note dated August 13, 2024. Interest not currently accruing; will begin accruing upon certain trigger events under Debt Repayment Agreement dated August 13, 2024, including a missed scheduled repayment. · page: 6 · as of: 2024-08-13 · amount: 49290859.45 · debtor: KMC Mining Corporation · creditor: The Klemke Foundation · currency: CAD · security: General Security Agreement in all present and after-acquired personal property of KMC, subordinated only to the Syndicate's security
- financial positionnote: Para 40: 'KMC's total outstanding liabilities exceed $220,000,000' - stated as a floor. Components as of Oct 31, 2024 include Syndicate debt $104,316,256, Klemke Foundation debt $49,290,859.45, Equipment Lenders $55,623,182 (Heavy $52,649,938 + Light Duty $2,973,244), and unsecured trade payables/accrued liabilities $22,218,366.57. Total assets not stated as a consolidated figure in these pages; net book value of Property and Equipment alone was $264,096,000 as at September 30, 2024 per internal (unaudited) financial statements; a more detailed outline of estimated asset values is contained in the sealed Confidential Supplementary Affidavit. · page: 7 · as at: 2024-10-31 · basis: Affidavit statement of KMC's Executive Chairman; underlying detailed asset valuations set forth in a Confidential Supplementary Affidavit sworn concurrently (sealed, not provided in these pages) · scope: entity - KMC Mining Corporation · currency: CAD · total liabilities: 220000000
- secured creditorsnote: Aggregate of Heavy Equipment Lessors $52,649,938 and Light Duty Lessors $2,973,244 as at October 31, 2024, per para 36 of affidavit. · page: 7 · as of: 2024-10-31 · amount: 55623182 · debtor: KMC Mining Corporation · creditor: Equipment Lenders (Heavy Equipment and Light Duty Lessors) - PPSA equipment financiers (PMSI class) · currency: CAD · security: Equipment leases (heavy equipment and light-duty vehicles); serialized-equipment lease financing aggregated per PPSA registration class