VANCOUVER (miningweekly.com) – TSX-V-listed junior Rusoro Mining has raised $5.5-million through the issue of promissory notes that will become due three months after Rusoro receives the first payment from Venezuela as part of an award issued by a World Bank arbitration tribunal on August 22.

Rusoro will reimburse the lenders three times the subscription amount once it receives the first payment of nearly $2.2-billion by Venezuela in compensation for illegally expropriating the company’s assets without compensation in 2011.

The company on Friday said it continued to explore all opportunities to enforce and collect this award. Proceeds from the note financing have been used to settle existing debt of about $3.66-million and the balance of about $1.84-million will be used for working capital.

The Russian-owned junior mining company also announced that its existing secured debt of $30-million plus accrued interest has been transferred from the existing debt holders to a new group of investors. Rusoro bought and retired $250 000 of this debt, with the remaining $29.75-million in default.

However, the new investors have agreed not to take any steps or actions to exercise their rights and remedies against the company until the expiration of a standstill period, which is expected to end when the company receives payment of the award. Rusoro received a net amount of about $865 000 from the proceeds of this transfer, which will be applied to working capital and enforcement of the award.

Meanwhile, Venezuela had brought an application before the Paris Court of Appeal on October 19 to set aside the award. Venezuela is expected to file a submission in support of its application by March 20. Rusoro has instructed Freshfields Bruckhaus Deringer to represent it in these proceedings, with the support of a special correspondent.

Rusoro also announced Friday that it had appointed Jessica van den Akker as CFO to succeed outgoing CFO Harpreet Dhaliwal.