Americas Gold and Silver Corporation announced it has arranged a US$100 million senior secured debt facility, primarily earmarked for growth and development capital spending at its Galena Complex. The Term Loan Facility consists of three tranches, with US$50 million to be advanced at closing and two additional US$25 million tranches available later.
The company also secured an offtake agreement with Ocean Partners USA Inc. for up to 100% of the concentrates from the Galena Complex, to be treated at Teck Resources Limited’s Trail Operations. This agreement guarantees processing capacity and is expected to turn several metals previously penalized, including copper and antimony, into potential revenue streams.
As a condition to closing the Term Loan Facility, Ocean Partners will subscribe for 16.8 million common shares in Americas Gold and Silver at C$0.95 per share, representing a premium of approximately 14% to the 20-day VWAP, for gross proceeds of US$11.5 million. This equity investment and the debt financing are crucial for the company's major growth plans at Galena, including reintroducing Long Hole Stoping and upgrading the No. 3 shaft.
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