Business
Elemental Altus Royalties Secures up to US$50 Million Credit Facility, Announces Fundraise and Debt Conversion & Repayment
Vancouver, British Columbia--(Newsfile Corp. - December 1, 2022) - Elemental Altus Royalties Corp...
About this update from Elemental Royalty Corporation
[{"type":"text","content":"Elemental Altus Royalties Secures up to US$50 Million Credit Facility, Announces Fundraise and Debt Conversion & RepaymentVancouver, British Columbia--(Newsfile Corp. - December 1, 2022) - Elemental Altus Royalties Corp. (TSXV: ELE) (OTCQX: ELEMF) (\"Elemental Altus\" or \"the Company\") is pleased to announce it has entered into an agreement with National Bank of Canada (\"NBC\") and Canadian Imperial Bank of Commerce (\"CIBC\") for a revolving credit facility which allows the Company to borrow up to US$40 million (the \"Revolving Facility\" or \"Facility\"), with an option to increase to US$50 million subject to satisfaction of certain conditions. Alongside the Facility, the Company announces the conversion into equity of approximately US$27,559,844 of debt (the \"Debt Conversion\") owed to La Mancha Investments S.à r.l. (\"La Mancha\"), a subsidiary of La Mancha Resource Fund SCSp (the \"Fund\"), and a non-brokered private placement (the \"Financing\") for up to US$5 million. The Company has drawn US$30 million under the Revolving Facility and repaid the outstanding loan owed to Sprott Private Resource Lending II (Collector), LP (\"Sprott\") in its entirety.HighlightsUp to US$50 million Revolving Facility with NBC and CIBC and repayment of Sprott loanOutstanding debt reduced to US$30 million at significantly lower interest rates, saving over US$3.5 million in interest annuallyMaterially decreases the Company's cost of capital and improves access to credit going forwardCompany in a strong position to transact on further accretive royalties and stream opportunitiesLa Mancha has increased its shareholding in the Company to approximately 34.3% prior to proposed FinancingFrederick Bell, CEO of Elemental Altus, commented:\"This refinancing marks a key turning point in the growth of the business as we significantly lower our cost of capital, while increasing our ability to grow through accretive transactions. By reducing our overall indebtedness, with the repayment of Sprott and the conversion of debt by La Mancha, we are also ensuring the Company continues to generate robust cashflows and is positioned to take advantage through all stages of the cycle. We are grateful for the continued support from our largest shareholder La Mancha who, together with our new lenders NBC and CIBC, share our long-term vision for building the Com...