Discovery Silver Corp Secures Major $250 Million Credit Facility
Discovery Silver Corp Announces Significant Credit Facility
Discovery Silver Corp. (NASDAQ: DSVSF) has recently entered into a pivotal financial agreement with a group of leading financial institutions. This agreement revolves around a substantial revolving credit facility worth up to US$250 million. The strategy involves an accordion feature that allows for the possibility to add an extra US$100 million, contingent upon acquiring additional commitments from lenders and fulfilling specific conditions.
Support from Key Financial Institutions
The lending syndicate features prominent banks, including the Bank of Montreal (BMO) acting as the administrative agent, alongside Canadian Imperial Bank of Commerce (CIBC) and National Bank of Canada (NBC) who serve as co-lead arrangers. This combined effort shows a robust backing for Discovery, which is essential for its future endeavors.
Executive Insights on Financial Flexibility
Tony Makuch, the CEO of Discovery, expressed his optimism regarding this new facility. He noted that this arrangement enhances the company’s financial capabilities and adds flexibility as Discovery continues to grow its operations in both Canada and Mexico. The agreement marks a significant step toward expanding the company’s influence in the precious metals sector.
Uses and Terms of the Credit Facility
This credit facility is set to mature in four years and is designated for various purposes including general corporate needs and funding future growth initiatives. The terms of the facility are standard for such arrangements and come with security measures that include the company’s assets and its material subsidiaries.
Loan Structure and Conditions
Distinct types of loans are available under this facility. These include term Secured Overnight Financing Rate (Term SOFR) loans with interest rates based on the company’s consolidated net leverage ratio. Additionally, there are US dollar base rate loans and letters of credit, providing a mix of financial support tailored to the company’s needs.
Strategic Future Plans
With the establishment of this credit facility, Discovery Silver is poised to terminate a previous agreement surrounding a US$100 million term loan with Franco-Nevada GLW Holdings Corp. This move indicates a strategic transition towards more favorable financing terms that align with the company’s broader financial strategies and growth objectives.
About Discovery Silver Corp
Discovery Silver is committed to becoming a leading North American precious metals company. They possess significant exposure to silver through the Cordero project, which is acclaimed as one of the largest undeveloped silver deposits globally. Furthermore, the company has expanded its operation footprint by acquiring the Porcupine Complex, effectively transitioning into a gold production powerhouse in and around Timmins, Ontario, a region renowned for its prolific gold mining history.
Contact Information
For questions regarding investment relations, Mark Utting, CFA, serves as the Senior Vice President of Investor Relations at Discovery Silver. He can be reached at 416-806-6298 or via email at mark.utting@discoverysilver.com. More information can also be found on their website at www.discoverysilver.com.
Frequently Asked Questions
What is the purpose of the new credit facility?
The credit facility is intended for general corporate needs, working capital, and financing growth investments for Discovery Silver Corp.
Who are the lenders involved in the credit facility?
The Bank of Montreal, CIBC, and NBC are significant contributors to the lending syndicate that supports the facility.
When does the credit facility mature?
The facility is set to mature on September 15, 2028.
How will the credit facility impact Discovery's growth?
This facility will enhance Discovery's financial flexibility and support its growth strategies in silver and gold production.
How is the loan structured?
The facility offers various loan types, including Term SOFR loans and US dollar base rate loans, each with specific interest rate structures.
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