In June 2013, the Company issued approximately 6.0 million common shares on a flow-through basis for gross proceeds of approximately $22.0 million. Approximately 4.2 million shares were issued at a price of $3.70 per share in respect of Canadian exploration expenses ("CEE") and approximately 1.8 million shares were issued at a price of $3.50 per share in respect of Canadian development expenses ("CDE"). The proceeds will be used by the Company to fund eligible CEE and CDE projects.
At June 30, 2013, the Company had a $140.0 million revolving operating demand loan credit facility with a Canadian chartered bank. The revolving credit facility bears interest at prime plus a range of 0.50% to 2.50% and is secured by a $125 million fixed and floating charge debenture on the assets of the Company. At June 30, 2013, $63.8 million (December 31, 2012 - $68.5 million) had been drawn on the revolving credit facility. In addition, at June 30, 2013, the Company had outstanding letters of guarantee of approximately $2.5 million (December 31, 2012 - $1.5 million) which reduce the amount that can be borrowed under the credit facility.
Subsequent to June 30, 2013, the Company entered into a syndicated credit facility with a syndicate of three Canadian chartered banks. The syndicated credit facility replaces the Company's previous revolving operating demand loan credit facility. The syndicated facility has a borrowing base of $145 million, consisting of a $135 million revolving line of credit and a $10 million operating line of credit. The syndicated facility revolves for a 364 day period and will be subject to its next 364 day extension by July 11, 2014. If not extended, the syndicated facility will cease to revolve, the margins thereunder will increase by 0.50%, and all outstanding advances will become repayable in one year from the extension date.
Advances under the syndicated facility are available by way of prime rate loans, with interest rates between 1.00% and 2.50% over the Canadian prime lending rate, and bankers' acceptances and LIBOR loans, which are subject to stamping fees and margins ranging from 2.00% to 3.50% depending upon the debt to cash flow ratio of the Company. Standby fees are charged on the undrawn syndicated facility at rates ranging from 0.50% to 0.875%. The next scheduled borrowing base review of the syndicated facility is scheduled on or before November 1, 2013.
The ongoing global economic conditions have continued to impact the liquidity in financial and capital markets, restrict access to financing, and cause significant volatility in commodity prices. Despite the economic downturn and financial market volatility, the Company continued to have access to both debt and equity markets recently. The Company raised gross proceeds of approximately $22.0 million from the issuance of common shares during the second quarter of 2013 and subsequent to June 30, 2013, the Company entered into a $145 million syndicated credit facility which replaced the previous $140 million operating demand loan credit facility. The Company has also maintained a very successful drilling program which has resulted in significant increases in production and funds flow from operations in recent quarters in spite of continued pressure on oil and natural gas commodity prices. Management anticipates that the Company will continue to have adequate liquidity to fund budgeted capital investments through a combination of cash flow, equity, and debt. Crocotta's capital program is flexible and can be adjusted as needed based upon the current economic environment. The Company will continue to monitor the economic environment and the possible impact on its business and strategy and will make adjustments as necessary.
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