Business
Amerigo Resources: Executed Mandate Agreement with Scotiabank Chile to Refinance MVC Debt Facilities
VANCOUVER, British Columbia, Aug. 06, 2019 (GLOBE NEWSWIRE) -- Amerigo Resources Ltd. (TSX: ARG) ("Amerigo" or the "Company") is pleased to announce that its wh
About this update from Amerigo Resources Ltd
[{"type":"text","content":" VANCOUVER, British Columbia, Aug. 06, 2019 (GLOBE NEWSWIRE) -- Amerigo Resources Ltd. (TSX: ARG) (\"Amerigo\" or the \"Company\") is pleased to announce that its wholly-owned Chilean subsidiary, Minera Valle Central S.A. (“MVC”), has received a commitment letter from Scotiabank Chile (“the Commitment Letter”) and has executed a financing mandate agreement with Scotiabank Chile (the “Financing Mandate Agreement”) to refinance MVC’s existing debt facilities, obtained in 2015 and 2017 to finance the Cauquenes expansion (the “Existing Loans”). The Existing Loans currently have a balance of US$56.25 million plus interest accrued from July 1, 2019 and a term to December 31, 2021. Under the proposed terms and conditions set out in the Commitment Letter, Scotiabank Chile is to arrange a four-year senior secured term loan facility (the “New Facility”) of up to US$56.5 million on a best efforts basis. Scotiabank Chile has committed to underwrite 50% of the New Facility, up to US$28.25 million, as it has received firm credit approval. Closing of the New Facility is expected in Q3 2019. Proceeds from the New Facility will be used to refinance the Existing Loans and to finance transaction related costs. Rob Henderson, Amerigo’s President and CEO, stated, “We are pleased with the progress made to refinance MVC’s existing debt facilities in a way that would provide more flexibility and reduce liquidity exposure to the Company. We value our strategic relationship with MVC’s lenders and look forward to continuing our ongoing relationship with them.” The New Facility remains subject to the fulfillment of conditions including the following: a) completion of customary due diligence by the lenders; b) the preparation, execution and delivery of loan documentation that incorporates substantially the terms and conditions set out in the Commitment Letter; c) there having been no material adverse change in the business, financial condition, operational results and property of MVC or in the credit or financial markets of Chile and/or internationally which according to Scotiabank Chile may impede or affect substantially the ability of granting the New Facility; d) the payment by MVC of all applicable expenses, fees, commissions, taxes and levies related to the transaction; e) the accuracy and integrity in substance of all statements and information that M...