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Short Term Debt

9 Months Ended

Sep. 30, 2015

Debt Disclosure [Abstract]

Short Term Debt

5. Short-term Debt

RMB Facility Agreement

On August 10, 2012, Solitario entered into the Facility Agreement and had borrowed $5,000,000 from RMBAH as of the date of the Transaction. In connection with the Facility Agreement, Solitario recorded a warrant discount related to the RMB Warrants. Solitario also recorded deferred offering costs related to the RMB Loan. The warrant discount and deferred offering costs were 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.

On August 5, 2015, Solitario entered into the RMB Loan Extension to extend the maturity date of the RMB Loan from August 21, 2015 to September 30, 2015. In consideration for entering into the RMB Loan Extension, Solitario paid RMBAH an extension fee of $50,000 and agreed to extend the terms of the RMB Warrants from August 21, 2015 to August 21, 2016.

Concurrent with the closing of the Transaction Solitario paid RMBAH $5,000,000 plus $7,000 of interest and fees in full payment of the RMB Loan and all obligations due under the Facility Agreement. Upon payment, the RMB Loan was terminated and may not be drawn in the future. Solitario had no balance due on the RMB Loan as of September 30, 2015.

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			—				139				139
Repayment of RMB Loan			(5,000	)			—				(5,000	)
Ending balance September 30, 2015		$	—			$	—			$	—

UBS Short-term 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 Solitario’s assets held in its UBS brokerage account. The UBS secured line of credit of $802,000 was paid off during the nine months ended September 30, 2014.

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

(in thousands)		Three months ended September 30,								Nine months ended September 30,
		2015				2014				2015				2014
RMB Loan interest
Interest paid in cash		$	95			$	54			$	228			$	150
Amortization of the RMB Warrants discount			31				54				139				162
Amortization of RMB deferred financing costs			28				49				126				147
Total interest expense related to the RMB Loan			154				157				493				459
UBS secured credit line			—				—				—				4
Total		$	154			$	149			$	493			$	463

During the three and nine months ended September 30, 2015 and 2014, Solitario capitalized all of its interest to mineral property. See Note 2, “Mineral property,” above.