- Torex Gold Resources (TXG) has finalized a credit agreement with a syndicate of banks, increasing the amount of available credit to $250 million
- The credit agreement consists of a $150 million revolving credit facility and a $100 million term loan credit facility
- The $150 million revolving credit facility matures on December 31, 2025
- The $100 million term loan facility matures on June 30, 2025
- Torex is a Canada-based gold producer focused on its 100 per cent owned Morelos Property in Mexico
- Torex Gold Resources Inc. (TXG) opened trading at C$10.50
Torex Gold Resources (TXG) has finalized a credit agreement with a syndicate of banks, increasing the amount of available credit to $250 million.
The maturity of the facilities has been extended from 2023 to 2025.
Andrew Snowden, CFO of Torex, commented on the news.
“We are pleased to increase the capacity and extend the maturity of our credit facilities with a syndicate of supportive lenders. The amended credit agreement represents another key de-risking milestone in developing the Media Luna Project. The amended facilities provided by Bank of Montreal, as Joint Bookrunner, Joint Lead Arranger and Administrative Agent, The Bank of Nova Scotia, as Joint Bookrunner, Joint Lead Arranger and Syndication Agent, the Canadian Imperial Bank of Canada, ING Capital LLC., National Bank of Canada and Societe Generale, further enhances the company’s financial flexibility. The facilities include similar covenants and security to the prior credit agreement and maintain the optionality for the company to pursue a potential future high yield debt offering, assuming the interest rate and maturity are advantageous to Torex shareholders.”
He added,
“With $311 million of cash on hand at the end of June, no debt, and strong forecast cash flow from El Limón Guajes, the $250 million available under the latest credit facilities place Torex on solid footing to fund the development of Media Luna, continue to invest in value-generating exploration, and maintain a minimum of $100 million of liquidity on the balance sheet.”
The credit agreement consists of a $150 million revolving credit facility and a $100 million term loan credit facility.
The $150 million revolving credit facility matures on December 31, 2025 and is subject to quarterly commitment reductions of $12.5 million commencing on March 31, 2024.
The $100 million term loan facility can be drawn until December 31, 2023, matures on June 30, 2025. The loan facility is subject to four equal quarterly repayment instalments beginning on September 30, 2024.
Both the revolving credit facility and term loan facility can be repaid in full anytime without penalty.
Torex is a Canada-based gold producer focused on the exploration, development, and operation of its 100 per cent owned Morelos Property, located southwest of Mexico City.
Torex Gold Resources Inc. (TXG) opened trading at C$10.50.
