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Minera Alamos Announces US$25 million Construction Financing Package Termsheet Executed for Cerro de Oro Gold Project; Q1 Financial Results
Toronto, Ontario--(Newsfile Corp. - May 31, 2023) - Minera Alamos Inc.  (TSXV: MAI)  ...
About this update from Minera Alamos Inc.
[{"type":"text","content":"Minera Alamos Announces US$25 million Construction Financing Package Termsheet Executed for Cerro de Oro Gold Project; Q1 Financial ResultsToronto, Ontario--(Newsfile Corp. - May 31, 2023) - Minera Alamos Inc. (TSXV: MAI) (the \"Company\" or \"Minera Alamos\") is pleased to announce the conclusion of discussions with lenders regarding a funding package tailored for the limited capital requirements associated with the planned construction of the Cerro de Oro gold mine that is currently anticipated to begin next year. The Company has signed a termsheet for a US$15 million Loan Facility and US$10 million Royalty that is expected to close on or around July 14th upon signing of definitive documentation as well as board and regulatory approvals.\"We are delighted to have entered into this agreement, which provides a fully funded and single source solution to meet the capital expenditure requirements for the Company's planned new gold mine upon the successful receipt of permits. The low capital cost of the Cerro de Oro project has allowed us to consider less covenant heavy terms that provide for increased flexibility in the lead up and during construction of our second mine.\" Stated Doug Ramshaw, President, Minera Alamos. \"In addition, the termsheet provides the ability to draw down a modest portion of the total package ahead of permit receipt that will support the pre-construction activities planned for Cerro de Oro in 2023. This allows our existing treasury to continue to support operational activities elsewhere including the drill campaign currently underway and other corporate initiatives\".Key aspects of the financing package are detailed below:Loan Package (US$15 million)Loan Term - 3 yearsLoan upfront fee - 2% on closingLoan security - comprising share pledges over the Cerro de Oro and La Fortuna operating subsidiariesInterest charged at 1.25% per month on any drawn amount of the loanInterim Funding - US$5 million under the loan facility will be available to draw down immediately following closing to fund pre-permit activities related to the Cerro de Oro mine. The remaining US$10 million will be available upon receipt of construction permits.Royalty Package (US$10 million)2.75% NSR on all metal production from the Cerro de Oro mineRoyalty Buyback - for a period of 30 months post royalty closing, Minera can buy back 2...