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VanGold Signs US$7.5m Silver/Gold Loan Facility
Financing Enhances Liquidity During El Cubo Refurbishment VANCOUVER, BC / ACCESSWIRE / J...
About this update from Guanajuato Silver Company Ltd.
[{"type":"text","content":"VanGold Signs US$7.5m Silver/Gold Loan FacilityFinancing Enhances Liquidity During El Cubo RefurbishmentVANCOUVER, BC / ACCESSWIRE / June 1, 2021 / VanGold Mining Corp. (the \"Company\" or \"VanGold\") (TSXV:VGLD)(OTCQX:VGLDF) is pleased to announce that it has signed a definitive agreement with European based metals trading firm OCIM Group to obtain a non-dilutive US$7.5m financing in the form of a silver and gold loan to strengthen its balance sheet during the refurbishment of the Company's El Cubo mine and mill complex located approximately 11 kilometers east of Guanajuato City, in central Mexico.Loan Facility:First discussed in VanGold's news release of December 18, 2020 (click here for news release), the loan is for an 18-month term, including an initial six-month payment-free grace period, and is then repayable over the following 12 months with the Company delivering a set number of silver and gold ounces on a monthly basis. The number of silver and gold ounces will be fixed at a discount to the spot price on the day the Company chooses to draw down the funds which the Company intends to effect within 90 days of signing the agreement.James Anderson, Chairman and CEO stated: \"We are very pleased to be concluding this agreement at this time of strong silver and gold prices, which decreases the number of ounces of silver and gold needed to repay the loan facility. We have a very good relationship with the team at OCIM and we look forward to working with them in the future with regards to potentially providing additional capital for VanGold's future growth prospects.\"VanGold estimates that the amount of gold and silver required to repay this loan facility will represent approximately 25% of the projected gold and silver to be produced by VanGold from its operations at the El Cubo mill during the 12-month repayment period of the loan. The loan will be secured by, among other things, a general security agreement and pledge over the El Cubo complex in favour of OCIM and remains subject to acceptance by the TSX Venture Exchange and customary closing conditions.OCIM Group:OCIM Group is a family business which was established in Paris in 1961. With its core interests in real estate, OCIM has diversified into other tangible assets such as precious metals via its Geneva-based subsidiary. As a trader, OCIM trades physical metals with...