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Northern Graphite Announces Secured Debt and Royalty Financing and Amendments to Senior Secured Credit Facility and Royalty Agreement
Ottawa, Ontario--(Newsfile Corp. - November 29, 2023) - Northern Graphite Corporation (TSXV: NGC...
About this update from Northern Graphite Corporation
[{"type":"text","content":"Northern Graphite Announces Secured Debt and Royalty Financing and Amendments to Senior Secured Credit Facility and Royalty AgreementOttawa, Ontario--(Newsfile Corp. - November 29, 2023) - Northern Graphite Corporation (TSXV: NGC) (OTCQB: NGPHF) (FSE: 0NG) (XSTU: 0NG) (the \"Company\" or \"Northern\") is pleased to announce it has completed a financing consisting of US$1 million in secured debt and US$2 million in royalty financing provided ‎by funds managed by Sprott Resource Streaming and Royalty Corp. (collectively, \"Sprott\"). The financing was completed through amendments to the Company's senior secured credit agreement and royalty agreement entered into with Sprott in April 2022 in connection with the financing for the Company's acquisitions of the Lac des Iles graphite mine (\"LDI\") in Quebec and the Okanjande graphite mine in Namibia. ‎Under the amendments to the senior secured credit agreement (the \"Amended Credit Agreement\"), the Company has obtained a senior secured loan from Sprott in the amount of US$1 million, in addition to the US$12 million senior secured loan previously made by Sprott to the Company in April 2022. In addition, the Company has exercised options under the agreement to capitalize the cash interest payments due on the loan up until December 31, 2023 and add it to the principal amount of the loan, which will result in the principal amount of the loan being approximately US$14.6 million after giving effect to the capitalization of the interest. The Company has paid an interest payment option fee to Sprott in the amount of US$50,000 for the capitalization of interest up to June 30, 2023 and will pay Sprott an additional interest payment option fee for the capitalization of the interest up to December 31, 2023 in an amount equal to 10 percent of the accrued and unpaid interest due on such date for the period between June 30, 2023 and December 31, 2023. The principal amount of the loan bears interest at nine percent plus the greater of an adjusted three-month term SOFR and 1 percent and matures on April 29, 2026. ‎Under the amendments to the royalty agreement (the \"Amended Royalty Agreement\"), the Company has sold an additional royalty on gross sales revenue (\"GRR\") from LDI to Sprott for US$2 million, in addition to the nine percent GRR from LDI previously sold to ‎Sp...