Wesdome Announces Amendment to Increase and Extend Credit Facility
31 Août 2022 - 10:30PM
Wesdome Gold Mines Ltd. (TSX: WDO) (“Wesdome” or the “Company”)
today announces that it has executed an amended and restated credit
agreement that upsizes its senior secured revolving credit facility
(the “Credit Facility”), led by National Bank Financial Inc.
(“NBF”) to $80 million immediately and to $150 million upon
declaration of commercial production at Kiena. The facility also
features more favourable covenants, lowers the margin of borrowing,
and extends the term to August 25, 2025 from March 29, 2024. All
figures are stated in Canadian dollars unless otherwise noted.
Duncan Middlemiss, Chief Executive Officer,
commented, “With this facility and ongoing free cash flow
generation from our Eagle River mine, Wesdome maintains significant
financial liquidity and flexibility as we look towards ramping up
Kiena in the near term.”
The Credit Facility is secured by all of the
Company’s present and future real and personal property. The NBF
Facility is available by way of (i) Canadian dollar Prime Rate or
U.S. dollar Base Rate, with interest rates ranging from 1.75% to
2.75% over NBF’s Prime Rate or Base Rate, as applicable, (ii)
Canadian dollar Bankers’ Acceptances at acceptance fees ranging
from 2.75% to 3.75%, and (iii) U.S. dollar Secured Overnight
Financing Rate (“SOFR”), with interest rates ranging from 2.75% to
3.75% over SOFR. The actual spread or rate will be determined based
on the Company’s net leverage ratio. The NBF Facility is also
available for letters of credit and will be used for general
corporate and working capital purposes
The amended and restated Credit Agreement will
be posted to SEDAR (www.sedar.com) in due course.
COVID-19
The health and safety of our employees,
contractors, vendors, and consultants is the Company’s top
priority. In response to the COVID-19 outbreak, Wesdome has adopted
all public health guidelines regarding safety measures and
protocols at all of its mine operations and corporate office. These
protocols are still in place at all sites despite the loosening of
some provincial public health guidelines. In addition, our internal
COVID-19 Taskforce continues to monitor developments and implement
policies and programs intended to protect those who are engaged in
business with the Company.
Through care and planning, to date the Company
has successfully maintained operations, however there can be no
assurance that this will continue despite our best efforts with the
emergence of new, highly contagious variants such as Omicron. To
date, the company has been impacted by this most recent variant
outbreak, with employees at both operations and corporate office
becoming infected which may negatively impact our ability to
maintain projected timelines and objectives. Consequently, the
Company’s actual future production and production guidance is
subject to higher levels of risk than usual. We are continuing to
closely monitor the situation and will provide updates as they
become available.
ABOUT WESDOMEWesdome is a
Canadian focused gold producer with two high grade underground
assets, the Eagle River mine in Ontario and the recently re-started
Kiena mine in Quebec. The Company also retains meaningful
exposure to the Moss Lake gold deposit in Ontario through its
equity position in Goldshore Resources Inc. The Company’s primary
goal is to responsibly leverage this operating platform and
high-quality brownfield and greenfield exploration pipeline to
build Canada’s next intermediate gold producer. Wesdome trades
on the Toronto Stock Exchange under the symbol “WDO,” with a
secondary listing on the OTCQX under the symbol “WDOFF.”
For further information, please
contact:
Duncan Middlemiss |
or |
Lindsay Carpenter Dunlop |
President and CEO |
|
VP Investor Relations |
416-360-3743 ext. 2029 |
|
416-360-3743 ext. 2025 |
duncan.middlemiss@wesdome.com |
|
lindsay.dunlop@wesdome.com |
220 Bay St, Suite 1200Toronto, ON, M5J 2W4
Toll Free: 1-866-4-WDO-TSXPhone: 416-360-3743,
Fax: 416-360-7620Website: www.wesdome.com
This news release contains “forward-looking
information” which may include, but is not limited to, statements
with respect to the future financial or operating performance of
the Company and its projects. Often, but not always,
forward-looking statements can be identified by the use of words
such as “plans”, “expects”, “is expected”, “budget”, “scheduled”,
“estimates”, “forecasts”, “intends”, “anticipates”, or “believes”
or variations (including negative variations) of such words and
phrases, or state that certain actions, events or results “may”,
“could”, “would”, “might” or “will” be taken, occur or be achieved.
Forward-looking statements involve known and unknown risks,
uncertainties and other factors which may cause the actual results,
performance or achievements of the Company to be materially
different from any future results, performance or achievements
expressed or implied by the forward-looking statements.
Forward-looking statements contained herein are made as of the date
of this press release and the Company disclaims any obligation to
update any forward-looking statements, whether as a result of new
information, future events or results or otherwise. There can be no
assurance that forward-looking statements will prove to be
accurate, as actual results and future events could differ
materially from those anticipated in such statements. The Company
undertakes no obligation to update forward-looking statements if
circumstances, management’s estimates or opinions should change,
except as required by securities legislation. Accordingly, the
reader is cautioned not to place undue reliance on forward-looking
statements. The Company has included in this news release certain
non-IFRS performance measures, including, but not limited to, mine
operating profit, mining and processing costs and cash costs. Cash
costs per ounce reflect actual mine operating costs incurred during
the fiscal period divided by the number of ounces produced. These
measures are not defined under IFRS and therefore should not be
considered in isolation or as an alternative to or more meaningful
than, net income (loss) or cash flow from operating activities as
determined in accordance with IFRS as an indicator of our financial
performance or liquidity. The Company believes that, in addition to
conventional measures prepared in accordance with IFRS, certain
investors use this information to evaluate the Company's
performance and ability to generate cash flow.
PDF
available: http://ml.globenewswire.com/Resource/Download/d14764d1-8ee0-4a38-9b07-1a6c9716e0e9
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