- Bear Creek Mining (BCM) US$25 million Equinox Gold payment
- The hope is to lower the two-year payment of US$25 million for the Mercedes Gold Mine in Sonora, Mexico
- Last week, the company stated that the note will amortize at a fixed rate of US$700,000 per month
- Bear Creek has the option to prepay, without penalty, any portion of the note at any time prior to the maturity date
- In addition to the note, the company will issue 2,750,000 common shares to Equinox Gold
- Bear Creek Mining (BCM) is up over 3 per cent, trading at C$0.66 at 11:47 am EST
Bear Creek Mining (BCM) has revised the terms of the heads of agreement with Equinox Gold.
The hope is to lower the two-year payment of US$25 million for the Mercedes Gold Mine in Sonora, Mexico.
The deferred payment for the company was due this past fall on October 26, 2022.
Revised terms
The promissory note bears a nominal rate of interest equal to 12.5 per cent per annum and matures after a term of two years on October 21, 2024.
Last week, the company stated that the note will amortize at a fixed rate of US$700,000 per month during the first year until March 3, 2024.
Bear Creek has the option to prepay, without penalty, any portion of the note at any time prior to the maturity date.
The note will be secured by a first lien and certain second lien pledges of Bear Creek’s equity interests in the holding companies through which Bear Creek holds Mercedes and the Corani silver-lead-zinc deposit in Puno, Peru.
In addition to the note, the company will issue 2,750,000 common shares to Equinox Gold.
Giving the note and bonus shares is subject to the completion of definitive documentation and approval of the TSX Venture Exchange.
Bear Creek Mining (BCM) is a precious metals producer with a world-class development asset.
Bear Creek Mining (BCM) is up over 3 per cent, trading at C$0.66 at 11:47 am EST.