VANCOUVER, BC, Oct. 4, 2021 /CNW/ - Mako Mining
Corp. (TSXV: MKO) (OTCQX: MAKOF) ("Mako" or the
"Company") is pleased to announce that Wexford
Catalyst Trading Limited, Wexford Spectrum Trading Limited and
Debello Trading Limited (collectively, the "Lenders") and
Wexford Capital LP, as agent on behalf of the Lenders (the
"Agent") have agreed to an extension of the current maturity
date of the unsecured term loan in the amount of US$15,150,000 (the "Wexford Loan"), of
which US$12,865,000 of principal
remains outstanding. This extension, from August 20, 2022 to February 21, 2023, was made pursuant to the terms
of the loan agreement dated as of February
20, 2020, as among Mako, as borrower, the Lenders and the
Agent. The Wexford Loan is fully drawn and may be prepaid at any
time, in whole or in part, at par plus accrued but unpaid interest,
without penalty or premium and currently bears interest at a rate
of 10% per annum, payable semi-annually on June 30th and December 31st each year.
No fees, or other compensation, was provided to the Lenders for
this six-month extension.
Akiba Leisman, Chief Executive
Officer of Mako states that, "Wexford has been an extremely
supportive shareholder since Mako was created and has provided the
majority of the equity and debt used to construct and commission
the San Albino gold mine. Since declaring commercial
production at San Albino on July
1st, the Company has been rapidly reducing
liabilities, including the reduction in principal of approximately
US$2.3 million on the Wexford
Loan. Debt repayment continues to be a top priority, but the
recent decline in Mako's share price has accelerated plans for a
return of capital to shareholders, as the share price is at levels
that we believe do not reflect the value of the business. The
extension of the Wexford Loan by six months provides maximum
flexibility to pursue this. The Company intends to announce
specific plans for the return of capital to shareholders
shortly."
On behalf of the Board,
Akiba Leisman
Chief
Executive Officer
About Mako
Mako Mining Corp. is a publicly listed gold mining, development
and exploration company. The Company operates the high-grade
San Albino gold mine in Nueva
Segovia, Nicaragua, which
ranks as one of the highest-grade open pit gold mines
globally. Mako's primary objective is to operate San Albino
profitably and fund exploration of prospective targets on its
district-scale land package.
Forward-Looking Information: Some of the
statements contained herein may be considered "forward-looking
information" within the meaning of applicable securities laws.
Forward-looking information can be identified by words such as,
without limitation, "estimate", "project", "believe", "anticipate",
"intend", "expect", "plan", "predict", "may" or "should" or
variations thereon or comparable terminology. The forward-looking
information contained herein reflects the Company's current beliefs
and expectations, based on management's reasonable assumptions, and
includes, without limitation, the Company's intention
to announce specific plans for a return of capital to shareholders
shortly, and that Mako will meet its objective to operate
San Albino profitably and fund exploration of prospective targets
on its district-scale land package. Such forward-looking
information is subject to a variety of risks and uncertainties
which could cause actual events or results to differ materially
from those reflected in the forward-looking information, including,
without limitation, unanticipated costs; cash flow generation being
weaker than expected inhibiting the Company's ability to repay its
debts; share price fluctuations; and other risks and uncertainties
as disclosed in the Company's public disclosure filings on SEDAR at
www.sedar.com. Such information contained herein represents
management's best judgment as of the date hereof, based on
information currently available and is included for the purposes of
providing investors with information regarding the current status
of the Wexford Loan, and may not be appropriate for other
purposes. Mako does not undertake to update any forward-looking
information, except in accordance with applicable securities
laws.
Neither the TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
SOURCE Mako Mining Corp.