Wesdome Gold Enhances Credit Facility for Growth and Stability
Wesdome Gold Mines Expands Credit Facility for Future Growth
Wesdome Gold Mines Ltd. (TSX: WDO, OTCQX: WDOFF) is excited to share that it has successfully executed an amended credit agreement with a consortium of lenders. This agreement has not only upsized their existing revolving credit facility but extended its maturity by an additional three years, now set to June 2028.
Details of the Enhanced Credit Agreement
The restructured credit facility now boasts aggregate commitments totaling US$250 million, with an option to increase this amount by an additional US$50 million, bringing the total potential to US$300 million. This represents a significant increase from their previous facility, which was due for maturity in the near future.
Importance of the Credit Facility
Anthea Bath, the President and CEO of Wesdome, expressed gratitude to their lenders for the ongoing support and confidence in the company. According to Bath, this substantial uptick in the credit facility along with improved terms illustrates the high quality of their assets and the progress Wesdome has made as a gold producer dedicated to delivering long-term value.
Financial Conditions of the Credit Facility
Under the terms of this agreement, advances will accrue interest based on the Secured Overnight Financing Rate (SOFR), plus a margin varying between 2.25% to 3.25% per annum, depending on Wesdome's leverage ratio. The financing will serve various corporate purposes, such as acquisitions, investments, and ongoing mine developments, highlighting the company's ambition to grow responsibly.
Collaborative Partnerships
National Bank Financial Inc. played a central role as the lead arranger and bookrunner, while Bank of Montreal acted as the syndication agent facilitating this new agreement. Additional members of the lender consortium include the National Bank of Canada, Fédération des Caisses Desjardins du Québec, and the Canadian Imperial Bank of Commerce. This collaboration underscores the solid partnerships Wesdome has formed within the financial sector.
About Wesdome Gold Mines Ltd.
Wesdome, a Canadian-focused gold producer, operates two high-grade underground mining assets: the Eagle River and Kiena mines. By harnessing its robust operational platform and high-quality exploration potential, Wesdome is committed to enhancing its position as a growing, value-driven gold producer. The company prides itself on its focus on sustainability and responsible mining practices, ensuring that its growth aligns with environmental, social, and governance principles.
Frequently Asked Questions
What has Wesdome Gold Mines recently announced?
Wesdome Gold Mines announced an increase in its revolving credit facility and an extension of its maturity, providing more financial flexibility.
How much is the new credit facility worth?
The enhanced credit facility totals US$300 million, allowing for greater operational support.
Who facilitated this credit agreement?
National Bank Financial Inc. acted as the lead arranger, while Bank of Montreal served as the syndication agent.
What will the funds from the credit facility be used for?
The funds are earmarked for general corporate purposes including mine development and potential acquisitions.
What is unique about Wesdome's operations?
Wesdome focuses on high-grade underground assets and is committed to sustainable and responsible mining practices.
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