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Short Term Debt
 9 Months Ended
Sep. 30, 2014
Debt Disclosure [Abstract]  
Short Term Debt

4.       Short-term Debt

RMB Facility Agreement

 

On August 10, 2012, Solitario entered into a Facility Agreement (the “Facility Agreement”) with RMB Australia Holdings Limited, an Australian corporation (“RMBAH”), and RMB Resources Inc., a Delaware corporation (“RMBR”) whereby Solitario was permitted to borrow up to $5,000,000 from RMBAH (with any amounts outstanding collectively being the “RMB Loan”) at any time during the 24 month period commencing on August 21, 2012, In connection with the Facility Agreement, Solitario recorded a warrant discount related to the warrants issued to RMBAH at the time Solitario entered into the Facility Agreement. The warrant discount is being amortized on a straight-line basis to interest cost over 36 months, the term of the Facility Agreement. The RMB Loan is due in full on August 21, 2015, and outstanding amounts bear interest at the 90-day LIBOR rate plus 5%, payable in arrears on the last day of each quarterly interest period. The RMB Loan interest rate was 5.23% at September 30, 2014. The RMB Loan may be repaid at any time without penalty. Any amounts repaid may not be redrawn under the Facility Agreement. The RMB Loan is secured by a lien on Solitario’s 80% interest in MH-LLC as well as a general security interest in Solitario’s remaining assets. Prior to August 21, 2014, Solitario classified the RMB Loan as long-term debt.

 

The following table summarizes the RMB Loan:

  RMB RMB RMB
  (in thousands) Loan borrowing Warrant discount

Debt

balance

      Beginning balance December 31, 2013 (long-term debt) $ 3,500  $(356) $3,144 
        Borrowing 1,500  -   1,500 
        Amortization of discount to interest cost  -      162  162 
      Ending balance September 30, 2014 (short-term debt) $5,000  $(194) 4,806 

 

Solitario recorded the following interest cost related to the RMB Loan:

(in thousands)

Three months ended

September 30,

Nine months ended

September 30,

  2014 2013 2014 2013
Interest paid in cash $ 54  $ 48  $ 150  $ 118 
Amortization of the RMB Warrants discount 54  55  162  163 
Amortization of RMB deferred financing costs   49    49    147   147 
  Total interest cost related to the RMB Loan $157  $152  $459  $428 

 

UBS credit line

 

During the nine months ended September 30, 2014 Solitario had a secured credit line agreement with UBS Bank, USA (“UBS”), which was secured by all of Solitario’s assets held in its UBS brokerage account, consisting primarily of Kinross shares. The UBS secured line of credit carried an interest rate which floated based upon a base rate of 2.25% plus the one-month London Interbank Offered Rate (“LIBOR”) which averaged 0.16% during the period the UBS secured line of credit was outstanding during the nine months ended September 30, 2014. Solitario paid its entire balance owing on the UBS secured line of credit during the nine months ended September 30, 2014 and the secured line of credit was terminated.

 

The following tables summarize Solitario’s short-term debt:

   
  (in thousands)  
  UBS short-term credit line  
      Beginning balance December 31, 2013 $ 802 
        Borrowing, including interest 104 
        Repayments   (906)
      Ending balance September 30, 2014 $   -   

 

 

(in thousands)

Three months ended

September 30,

Nine months ended

September 30,

  2014 2013 2014 2013
Interest UBS short-term credit line $   -  $ 3  $ 4  $ 19 

 

During the three and nine months ended September 30, 2014 and 2013, Solitario capitalized all of its interest to mineral property. See Note 2, “Mineral property,” above.