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Golden Arrow Resources Announces Entering Into Credit Agreement
VANCOUVER, British Columbia, July 12, 2018 (GLOBE NEWSWIRE) -- Golden Arrow Resources Corporation (TSX-V:GRG) (FSE:GAC) (OTCQB:GARWF) (“Golden Arrow” or the “Co
About this update from Golden Arrow Resources Corp.
[{"type":"text","content":" VANCOUVER, British Columbia, July 12, 2018 (GLOBE NEWSWIRE) -- Golden Arrow Resources Corporation (TSX-V:GRG) (FSE:GAC) (OTCQB:GARWF) (“Golden Arrow” or the “Company”) is pleased to announce that it has entered into a credit agreement (the “Credit Agreement”) dated as of July 6, 2018 with SSR Mining Inc. (NASDAQ:SSRM) (TSX:SSRM) (“SSR Mining”) for a non-revolving term loan (the “Loan”) in an aggregate principal amount equal to US$10,000,000. The Loan matures on the date which is the earlier of: (a) the date which is 24 months from the first delivery of ore from the Puna Operations Inc. (“Puna Operations”) joint venture’s Chinchillas Property to the Pirquitas Mill; and (b) December 31, 2020. “We are very grateful to SSR Mining for granting a line of credit for up to US$10M, which is strictly confined to meeting Golden Arrow’s funding requirements for the Puna Operations joint venture in Jujuy,” stated Joseph Grosso, President & CEO. “With the project continuing to progress on budget, we expect this funding to ensure the Chinchillas integration with the Pirquitas Mill while minimizing dilution to Golden Arrow’s shareholders.” The proceeds borrowed under the Credit Agreement will be used by Golden Arrow to fund its contributions under the shareholders’ agreement entered into between Golden Arrow and SSR Mining on May 31, 2017 as sole shareholders of Puna Operations. The Loan is secured by the Company’s ownership and equity interests in Puna Operations. The Loan will bear interest (computed on the basis of the actual number of days elapsed over a year of 365 days and compounded monthly) at a rate per annum equal to the US Base Rate (as such term is defined in the Credit Agreement) plus 10%. Interest on the Loan shall accrue from and including the date of each borrowing under the Credit Agreement, compounded monthly, and shall be capitalized and payable on the maturity date. The Company has agreed to pay to SSR Mining a commitment fee of US$100,000 on the date upon which the initial borrowing under the Credit Agreement is made. The Credit Agreement includes prepayment provisions as well as the usual and customary representations and warranties and covenants and negative covenants restricting the amount of indebtedness. About Golden Arrow: Golden Arrow is an exploration company earning production income. The Company has a su...