Gatos Silver Announces Re-Instatement and Extension of US$50 Million Revolving Credit Facility
December 20 2022 - 5:51PM
Business Wire
Gatos Silver, Inc. (NYSE/TSX: GATO) (“Gatos Silver” or the
“Company”) is pleased to announce that it has extended the maturity
date and re-established a credit limit of US$50 million in an
amended and restated revolving credit facility (the “Revolver”)
with Bank of Montreal (“BMO”). The Revolver includes an accordion
feature providing up to an additional US$25 million of credit (the
“Accordion”).
The Revolver is available for general corporate purposes,
working capital, acquisitions, and investments. In view of its
strong cash position, the Company made a US$4 million repayment
prior to closing. The current balance outstanding on the Revolver
is US$9 million with US$41 million available for advance.
“The revised facility provides Gatos Silver with further
financial flexibility as we continue to execute on our exploration
and growth strategy to further maximize shareholder value, both
within and beyond the Los Gatos district,” said Dale Andres, CEO of
Gatos Silver. “It represents a clear vote of confidence from our
lender in the quality of Gatos Silver’s assets, its updated mineral
reserves and mineral resources, and its new management team.”
André van Niekerk, the Company’s CFO commented: “We are pleased
with the re-instatement and extension of the Revolver with BMO and
would like to thank our lender for its continued support. Our net
cash position continued to improve quarter over quarter during 2022
and with the amendment of the Revolver, the Company is in a very
strong financial position with sufficient liquidity to pursue its
value creation catalysts.”
Key terms of the amended Revolver include:
- US$50 million revolving line of credit with an accordion
feature, which allows for an increase in the total line of credit
up to US$75 million, subject to certain conditions.
- The maturity date is extended from July 31, 2024 to December
31, 2025.
- A change in the benchmark interest rate from LIBOR to the
Secured Overnight Financing Rate (“SOFR”).
- Loans under the Revolver bear interest at a rate equal to
either a term SOFR rate plus a margin ranging from 3.00% to 4.00%
or a U.S. base rate plus a margin ranging from 2.00% to 3.00%, as
selected by the Company.
There were no other material changes to the terms of the
original Revolver dated July 12, 2021. Availability under the
Revolver was previously reduced to US$30 million on March 8,
2022.
About Gatos Silver
Gatos Silver is a silver dominant exploration, development and
production company that discovered a new silver and zinc-rich
mineral district in southern Chihuahua State, Mexico. As a 70%
owner of the Los Gatos Joint Venture ("LGJV"), the Company is
primarily focused on operating the mine and mineral processing
plant at the LGJV’s Cerro Los Gatos deposit. The LGJV consists of
approximately 103,087-hectares of mineral rights, representing a
highly prospective and under-explored district with numerous
silver-zinc-lead epithermal mineralized zones identified as
priority targets.
Forward-Looking Statements
This press release contains statements that constitute “forward
looking information” and “forward-looking statements” within the
meaning of U.S. and Canadian securities laws. All statements other
than statements of historical facts contained in this press
release, including statements regarding future credit availability,
the Company’s financial liquidity, and its growth options and
strategies, are forward-looking statements. Forward-looking
statements are based on management’s beliefs and assumptions and on
information currently available to management. Such statements are
subject to risks and uncertainties, and actual results may differ
materially from those expressed or implied in the forward-looking
statements, and such other risks and uncertainties described in our
filings with the U.S. Securities and Exchange Commission and
Canadian securities commissions. Gatos Silver expressly disclaims
any obligation or undertaking to update the forward-looking
statements contained in this press release to reflect any change in
its expectations or any change in events, conditions, or
circumstances on which such statements are based unless required to
do so by applicable law. No assurance can be given that such future
results will be achieved. Forward-looking statements speak only as
of the date of this press release.
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version on businesswire.com: https://www.businesswire.com/news/home/20221220005688/en/
Investors and Media Contact
Tiffany Osburn Director, Financial Reporting and Corporate
Communications investors@gatossilver.com (720) 726-9662
Gatos Silver (NYSE:GATO)
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