Ryan Sean Davy, 43, spent six days in police custody after being caught hiding in a cave near Everest base camp without the permit costing USD 11,000 needed to climb the world's tallest mountain.
He was arrested during questioning under Nepal's strict public order laws for swearing at tourism officials -- allegations he denies.
"I paid them 1,000 rupees (USD 10). That's what I had in my pocket," Davy told AFP at the Kathmandu district office, where he was brought for the bail hearing.
He still faces charges related to his summit attempt, which carries a maximum USD 22,000 fine -- double the cost of the permit he was trying to avoid.
"The decision against him is in process but once the government decides the fine amount, he can pay and collect his passport," Dinesh Bhattarai, head of the tourism department, told AFP.
"We are looking at the laws to decide on action against him if he fails to pay."
When caught two weeks ago the South African told officials he climbed as far as Camp One -- at 6,000 metres (nearly 20,000 feet) -- despite not having proper equipment.
His passport was confiscated by government officials, who ordered he return to Kathmandu to collect it and pay a fine -- a journey he made by foot because he could not afford a plane ticket.
Johannesburg-born but US-based, Davy moved to Aspen in Colorado six months ago to prepare for his Everest bid, living out of a van as he was short on cash.
Davy said that had he reached the Everest summit he planned to cross to the Tibet side of the mountain -- a move that would have landed him in trouble with Chinese authorities as well.
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