Horizon Copper Bolsters Its Financial Flexibility
Horizon Copper Corp. has secured a new revolving credit facility that expands its financing options. The facility allows the company to draw up to US$30 million, with an accordion feature that can add a further US$20 million if needed. In total, Horizon now has access to as much as US$50 million.
Key Terms of the New Facility
The revolving credit agreement was arranged with National Bank of Canada and The Bank of Nova Scotia. It runs for four years and matures in September 2028, with the possibility of extension pending lender approvals. Horizon plans to use the facility to fund future asset acquisitions, advance the Hod Maden project, and support general corporate needs.
How Pricing and Covenants Work
Borrowings under the Revolving Loan will be priced off SOFR, plus a variable spread between 2.50% and 3.75%. Amounts not drawn will be subject to a standby fee of 0.56% to 0.84% per year, depending on Horizon’s leverage ratio. To keep access to this pricing and capacity, the company must maintain a leverage ratio below 4.0x, excluding all debt from its growth partner, Sandstorm Gold Ltd.
What Leadership Is Saying
Horizon’s President and CEO, Erfan Kazemi, said: “We are pleased to expand our financing capabilities with this new Revolving Loan. This credit facility, along with our cash reserves, enhances our financial flexibility as we aim to grow the Company and continue investing in Hod Maden's development.”
Where Horizon Copper Stands Today
Horizon Copper is focused on copper. The company holds a 1.66% net profits interest in the Antamina copper mine, a 24% equity stake in Entrée Resources Ltd., which is associated with the Oyu Tolgoi copper mine, and a 30% interest in the copper-gold Hod Maden project. Together, these positions reflect a strategy centered on high-quality copper exposure and long-term growth.
Looking Ahead
Horizon intends to keep building its portfolio, targeting copper projects that can meet growing demand tied to electric vehicles and renewable technologies. As these end markets expand, the company expects its access to flexible capital—and its existing positions—to support disciplined, opportunity-driven growth.
Frequently Asked Questions
What’s the total borrowing capacity under the new facility?
The facility provides up to US$50 million in total capacity: a US$30 million Revolving Loan plus an accordion feature for an additional US$20 million.
Who are the lenders on this credit agreement?
National Bank of Canada and The Bank of Nova Scotia are the lenders under the agreement.
How does Horizon Copper plan to use the proceeds?
The company intends to fund future asset acquisitions, continue investing in the Hod Maden project, and address general corporate purposes.
What financial covenants apply to the facility?
Horizon must maintain a leverage ratio of less than 4.0x, excluding all debt from its growth partner, Sandstorm Gold Ltd.
What’s the outlook for Horizon Copper following this deal?
With added financial flexibility, Horizon aims to pursue attractive copper opportunities and support Hod Maden’s development, positioning itself for demand tied to electric vehicles and renewable technologies.
