- Marathon Gold Corporation (MOZ) closes a 6.5-year US$185 million term loan credit facility with Sprott Private Resource Lending II LP
- Proceeds are to be used for the Marathon’s Valentine Gold Project
- The senior secured term loan facility of US$185 million will mature on June 30, 2028
- US$15 per ounce will be payable on the first one million ounces of gold produced by the project
- Marathon Gold Corporation (MOZ) is unchanged and is trading at $2.71 per share as of 12:57 p.m. ET
Marathon Gold Corporation (MOZ) has closed a 6.5-year US$185 million term loan credit facility with Sprott Private Resource Lending II LP.
Proceeds are to be used for the construction, development and working capital requirements of Marathon’s Valentine Gold Project in central Newfoundland and Labrador.
With this facility, the company has now achieved the debt component of its strategy.
The senior secured term loan facility of US$185 million will mature on June 30, 2028, with a 6-month extension option available.
The facility will be funded into a debt proceeds account in two tranches, being US$125 million at the closing and US$60 million on December 31st.
The facility is available to Marathon until March 31, 2025. A fee of US$4 million can be paid with the initial advance.
After the first release, the outstanding amount will bear an interest of 7.75 per cent plus the greater of either:
- A three-month LIBOR
- 0.50 per cent per annum, payable quarterly
The initial advance fee and 75 per cent of the interest accruing to the end of the availability period shall be capitalized.
US$15 per ounce will be payable on the first one million ounces of gold produced by the project. No other commitment or arrangement fees shall apply.
Marathon Gold Corporation (MOZ) is unchanged and is trading at $2.71 per share as of 12:57 p.m. ET.