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Short Term Debt

3 Months Ended

Mar. 31, 2015

Short-term Debt, Other Disclosures [Abstract]

Short Term Debt

5. Short-term Debt

RMB Facility Agreement

On August 10, 2012, Solitario entered into the Facility Agreement and has borrowed $5,000,000 from RMBAH under the RMB Loan. In connection with the Facility Agreement, Solitario recorded a warrant discount related to the RMB Warrants (defined below). Solitario also recorded deferred offering costs related to the RMB Loan. The warrant discount and deferred offering costs are being amortized on a straight-line basis to interest cost over 36 months, the term of the Facility Agreement. The RMB Loan 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 5.28% at March 31, 2015. 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.

The following table summarizes the RMB Loan:

	RMB	RMB	RMB
(in thousands)	Loan borrowing	Warrant discount	Long-term Debt
Beginning balance December 31, 2014	$ 5,000	$(139)	$4,861
Amortization of discount to interest cost	-	54	54
Ending balance March 31, 2015	$5,000	$(85)	4,915

UBS Short-term credit line

During the three months ended March 31, 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. The UBS secured line of credit of $802,000 was paid off during the three months ended March 31, 2014.

Solitario recorded the following interest cost related to outstanding short-term debt:

(in thousands)	Three months ended March 31,
	2015	2014
RMB Loan interest
Interest paid in cash	$ 66	$ 46
Amortization of the RMB Warrants discount	54	54
Amortization of RMB deferred financing costs	49	49
Total interest expense related to the RMB Loan	169	149
UBS secured credit line	-	4
Total	$169	$153

During the three months ended March 31, 2015 and 2014, Solitario capitalized all of its interest to mineral property. See Note 2, “Mineral property,” above.