TSX: SIL | NYSE American: SILV
VANCOUVER, BC, Nov. 29,
2022 /CNW/ - SilverCrest Metals Inc.
("SilverCrest" or the "Company") is pleased to announce that it has
refinanced its US$120 million secured
project financing facility, of which only US$90 million was drawn, with a new US$120 million senior secured credit facility
(the "Credit Facility") through a syndicate of lenders comprised of
The Bank of Nova Scotia (the
"Administrative Agent") and Bank of Montreal.
The Credit Facility includes a US$50
million term facility ("Term Facility" or "Term") and a
US$70 million revolving facility
("Revolving Facility"). On closing of the Credit Facility, the
Company fully drew the US$50 million
Term Facility and will use US$40
million of its cash balance to repay the existing
US$90 million project financing
facility, which was with an affiliate of RK Mine Finance ("RK").
The Revolving Facility of US$70
million will be available to the Company until November 27, 2026 for general corporate purposes
and working capital. On closing of the Credit Facility and
repayment of the project financing facility, the Company will have
an estimated cash balance of US$50
million, total debt of US$50
million and undrawn Revolving Facility of US$70 million.
N. Eric Fier, CPG, P.Eng and CEO
commented, "We would like to express our gratitude to RK for their
partnership and support during the construction of Las Chispas.
Having declared commercial production at Las Chispas with
US$91 million of cash on the balance
sheet as of November 1, 2022, we are
happy to transition to a facility that allows us to obtain greater
flexibility and significantly lower our cost of capital at the same
time. Our strong cash position coupled with this Credit Facility
will allow us to manage the risks and opportunities as we enter our
first full year of production."
Key terms of the Term Facility include:
- US$50 million term facility;
- 3-year term with a maturity date of November 28, 2025;
- Interest rate is initially based on an adjusted Term
SOFR1 rate, plus an applicable margin ranging from 2.50%
to 3.75%. The applicable Term SOFR margin will be set at 3.00%
until June 30, 2023;
- Repayment in consecutive equal quarterly instalments commencing
June 30, 2023, until the Term
Facility Maturity Date; and
- Amounts repaid under the Term may not be re-borrowed.
Key terms of the Revolving Facility include:
- US$70 million revolving
- 4-year term, with a maturity date of November 27, 2026;
- Interest rates are the same as the Term Facility. The undrawn
portion of the Revolving Facility will be subject to a standby fee
ranging from 0.5625% to 0.8438% per annum;
- the Revolving Facility is available to the Company subject to
customary conditions precedent; and
- Amounts repaid under the Revolving Facility may be re-borrowed
until the maturity date of the Revolving Facility.
1 SOFR means
a rate equal to the secured overnight financing rate as
administered by the Federal Reserve Bank of New York.
ABOUT SILVERCREST METALS
SilverCrest is a Canadian precious metals exploration and
production company headquartered in Vancouver, BC, that is focused on new
discoveries, value-added acquisitions and production assets in
Mexico's historic precious metal
districts. The Company's principal focus is operating its Las
Chispas Mine, in Sonora, Mexico.
SilverCrest's ongoing initiative is to increase its asset base by
expanding current resources and reserves, acquiring and developing
high value precious metals projects and ultimately operating
multiple silver-gold mines in the Americas. The Company is led by a
proven management team in all aspects of the precious metal mining
sector, including taking projects through discovery, finance, on
time and on budget construction, and production.
N. Eric Fier, CPG, P.Eng
Chief Executive Officer
SilverCrest Metals Inc.
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SOURCE SilverCrest Metals Inc.