Business
GSilver Arranges US$5M Debt Facility
VANCOUVER, BC / ACCESSWIRE / December 8, 2022 / Guanajuato Silver Company Ltd. (the " Company " ...
About this update from Guanajuato Silver Company Ltd.
[{"type":"text","content":"GSilver Arranges US$5M Debt FacilityVANCOUVER, BC / ACCESSWIRE / December 8, 2022 / Guanajuato Silver Company Ltd. (the \"Company\" or \"GSilver\") (TSXV:GSVR)(AQUIS:GSVR)(OTCQX:GSVRF) is pleased to announce that it has signed a new concentrate and pre-payment credit facility with Ocean Partners (UK) Limited (\"Ocean Partners\"), a UK based metals offtake and trading firm, to provide a US$5.0M revolving credit facility (the \"New Facility\") for operating and working capital purposes. The New Facility is in addition to the Company's existing US$5.0M credit facility advanced by Ocean Partners in August 2022 (see GSilver's previous news release dated August 30, 2022 - \"Guanajuato Silver Draws US$5,000,000 Credit Facility\").Chairman & CEO, James Anderson said, \"Ocean Partners has consistently demonstrated their resolute support for Guanajuato Silver and our vision to build the next mid-tier silver producer in Mexico. This debt facility will strengthen our balance sheet and provide us with additional flexibility as we continue to ramp up precious metals production at our four producing mines.\"The New Facility will be revolving in nature, secured by a share and asset pledge over the Company's Mexican subsidiary, Minera Mexicana El Rosario S.A. de C.V. (\"MMR\"), and re-payable and re-drawable in 4-month intervals over a term of 24 months. Interest will be calculated at 12-month SOFR + 7.5%. A portion of the New Facility will be used to extinguish approximately US$750,000 of existing debt, which represents the final amount owing to Ocean Partners on the Company's first prepayment financing facility of US$1.5M drawn in September, 2021 (see GSilver news release dated September 23, 2021 - \"GSilver Signs Concentrate Sales Agreement\"). Similarly, approximately US$750,000 will be used to repay the first four months' of interest and principal payments on Ocean Partners' US$5.0 million facility drawn in August 2022 as noted above. In aggregate, after making allowance for these repayments, the Company will have outstanding borrowings of approximately US$9.0M to Ocean Partners. In conjunction with the New Facility, the Company has agreed to consolidate and extend the sale of concentrate derived from its Guanajuato mines into a single offtake agreement with Ocean Partners for a term of 24 months ending December 31, 2024, subject to a m...