VANCOUVER, British Columbia,
July 18, 2017 /CNW/ -- Tahoe
Resources Inc. (TSX: THO, NYSE: TAHO) ("Tahoe" or the
"Company") today announced that the Company has entered into an
Amended and Restated Credit Agreement (the "Agreement") with a
syndicate of lenders to increase its revolving credit facility from
US$150 million to US$300 million with a US$50 million accordion feature and to extend the
term to July 19, 2021.
The Agreement includes terms that limit borrowing to a maximum
of US$75 million during the period of
suspension of the mining license at Escobal as a result of the
CALAS claim in Guatemala, as
further described in the Company's July 5,
2017 press release. In the event the Company's mining
license at Escobal remains suspended as of April 1, 2018, an Event of Default shall
occur. Other terms and conditions are substantially similar
to those in the previous US$150
million credit facility. The facility under the
Agreement is intended to be used for liquidity and general
corporate purposes.
"We are extremely pleased to have the on-going support of our
lenders while we work through the legal process in Guatemala," said Ron
Clayton, President & CEO. "While we do not
anticipate the need to draw on the credit facility in the near
future, it provides additional liquidity to support our
operations."
The Bank of Nova Scotia acted
as Administrative Agent, Joint Bookrunner, Co-Lead Arranger and
Issuing Bank, and HSBC Securities (USA) Inc. acted as Co-Lead Arranger and Joint
Bookrunner. The lending syndicate is comprised of The Bank of
Nova Scotia, HSBC Securities
(USA) Inc., Bank of Montreal, Royal Bank of Canada, Canadian Imperial Bank of Commerce,
The Toronto-Dominion Bank and National Bank of Canada.
About Tahoe Resources Inc.
Tahoe's strategy is to responsibly operate mines to world
standards, to pay significant shareholder dividends and to develop
high quality precious metals assets in the Americas. Tahoe is a
member of the S&P/TSX Composite and TSX Global Mining indices
and the Russell 3000 on the NYSE. The Company is listed on
the TSX as THO and on the NYSE as TAHO.
Cautionary Note Regarding Forward Looking Statements
This news release contains "forward-looking statements" within
the meaning of Section 27A of the United States Securities Act of
1933, as amended, Section 21E of the United States Exchange Act of
1934, as amended, the United States Private Securities Litigation
Reform Act of 1995, or in releases made by the United States
Securities and Exchange Commission, all as may be amended from time
to time, and "forward-looking information" under the provisions of
applicable Canadian securities legislation, concerning the
business, operations and financial performance and condition of the
Company. Forward-looking statements include, but are not limited
to, the intended use of proceeds of the amended and restated
facility, the provisional decision from the Supreme Court of
Guatemala and the decision of the
Constitutional Court which has the effect of suspending the
Company's mining license in respect of the Escobal mine and the
need to draw on the credit facility, the time for appeals to be
heard and decided and the likelihood of such provisional decision
being reconsidered and reversed by the Supreme Court of
Guatemala or overturned by the
Constitutional Court in Guatemala;
the timing and likelihood of the road blockage being peacefully
cleared and resolved; the future price of silver, gold, lead and
zinc; the timing and amount of estimated future production, costs
of production, capital expenditures, free cash flow, currency
exchange rate fluctuations; requirements for additional capital;
government regulation of mining operations; environmental risks;
unanticipated reclamation expenses; timing and possible outcome of
pending litigation, title disputes or claims; and limitations on
insurance coverage. Generally, these forward-looking statements can
be identified by the use of forward-looking terminology such as
"plans", "expects", "is expected", "budget", "scheduled",
"estimates", "forecasts", "intends", "anticipates", "believes", or
variations or comparable language of such words and phrases or
statements that certain actions, events or results "may", "could",
"would", "should", "might" or "will be taken", "occur" or "be
achieved" or the negative connotation thereof.
Forward-looking statements are necessarily based upon a number
of factors and assumptions that, if untrue, could cause the actual
results, performances or achievements of the Company to be
materially different from future results, performances or
achievements expressed or implied by such statements. Such
statements and information are based on numerous assumptions
regarding present and future business strategies and the
environment in which Tahoe will operate in the future, including
the price of silver, gold, lead and zinc, anticipated costs and
ability to achieve goals. In respect of the forward-looking
statements concerning a decision from the Supreme Court of
Guatemala on the definitive claim,
the factors to be considered by the Supreme Court in the definitive
decision and by the Constitutional Court on appeal, the timing and
the likelihood of success that the definitive decision will be
issued, the timing and likelihood of the road blockage being
peacefully cleared and resolved, the potential impacts of the court
decision and road blockage, and the time and expense of the
decision, challenges to such decision and efforts to peacefully
clear and resolve the road blockage, on the Company's operations,
financial condition and liquidity, Tahoe has made such statements
in reliance upon certain assumptions that Tahoe believes are
reasonable at this time. Readers are cautioned that the foregoing
list is not exhaustive. Tahoe's actual results, programs and
financial position could differ materially from those anticipated
in such forward-looking statements as a result of numerous factors,
risks and uncertainties, many of which are beyond the Company's
control. These include, but are not necessarily limited to workings
of the Guatemalan legal system, social unrest and political or
economic instability in Guatemala
and the Company's ability to efficiently resume operations once the
suspension of the mining license is lifted and roadblock is
cleared, and relationships with our partners, including employees,
vendors and community populations.
Certain important factors that could cause actual results,
performances or achievements to differ materially from those in the
forward-looking statements include, among others, silver, gold,
lead and zinc price volatility, discrepancies between actual and
estimated production, mineral reserves and mineral resources and
metallurgical recoveries, mining operational and development risks,
litigation risks, regulatory restrictions (including environmental
regulatory restrictions and liability), changes in national and
local government legislation, taxation, controls or regulations
and/or change in the administration of laws, policies and
practices, expropriation or nationalization of property and
political or economic developments in Guatemala, Peru, and Canada, and other jurisdictions in which the
Company does or may carry on business in the future, delays,
suspension and technical challenges associated with capital
projects, higher prices for fuel, steel, power, labor and other
consumables, currency fluctuations, the speculative nature of gold
exploration, the global economic climate, dilution, share price
volatility, competition, loss of key employees, additional funding
requirements and defective title to mineral claims or property.
Although Tahoe believes its expectations are based upon reasonable
assumptions and has attempted to identify important factors that
could cause actual actions, events or results to differ materially
from those described in forward-looking statements, there may be
other factors that cause actions, events or results not to be as
anticipated, estimated or intended.
Forward-looking statements are subject to known and unknown
risks, uncertainties and other important factors that may cause the
actual results, level of activity, performance or achievements of
Tahoe to be materially different from those expressed or implied by
such forward-looking statements, including but not limited to:
operational risks in Guatemala,
Peru and Canada; matters related to aboriginal rights
in Canada; risks related to
integration of acquisitions; risks related to obtaining,
maintaining and renewing licenses and permits to operate the
business; risks related to operating cash flows and liquidity;
future prices of silver, gold, lead and zinc; risks related to
indebtedness and financing requirements; risks related to licenses
and title to assets; risks related to governmental laws and
regulations; risks related to illegal mining; risks related to
operating hazards and availability of insurance; risks related to
mine concentrate transportation and marketing risk; risks related
to environmental matters; risks related to mineral reserve and
resource calculations and possible variations in ore reserves,
grade or recovery rates; risks related to international operations,
including economic and political instability in foreign
jurisdictions in which Tahoe operates; risks related to current
global financial conditions; failure of plant, equipment or
processes to operate as anticipated; mine development and operating
risks; accidents, labor disputes and other risks of the mining
industry; as well as those factors discussed in the section
entitled "Risk Factors Relating to Our Business" in Tahoe's most
recent annual information form available on SEDAR at
www.sedar.com and on EDGAR at www.sec.gov.
Although Tahoe has attempted to identify important factors that
could cause actual results to differ materially from those
contained in forward-looking statements, there may be other factors
that cause results not to be as anticipated, estimated or intended.
There can be no assurance that such statements will prove to be
accurate, as actual results and future events could differ
materially from those anticipated in such statements. Accordingly,
readers should not place undue reliance on forward-looking
statements. Forward-looking statements are made as of the date
hereof and, accordingly, are subject to change after such date.
Except as otherwise indicated by Tahoe, these statements do not
reflect the potential impact of any non-recurring or other special
items or of any disposition, monetization, merger, acquisition,
other business combination or other transaction that may be
announced or that may occur after the date hereof. Forward-looking
statements are provided for the purpose of providing information
about management's current expectations and plans and allowing
investors and others to get a better understanding of Tahoe's
operating environment. Tahoe does not intend or undertake to
publicly update any forward-looking statements that are included in
this document, whether as a result of new information, future
events or otherwise, except in accordance with applicable
securities laws.
For further information, please contact:
Tahoe Resources Inc.
investors@tahoeresources.com
Tel: 775-448-5800
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SOURCE Tahoe Resources Inc.