Torex Gold Fully Repays Debt Facility
Revolving Debt Facility Paid Off and Amended with more Flexible Terms
(All amounts expressed in U.S. Dollars unless otherwise stated)
TORONTO, March 31, 2021 (GLOBE NEWSWIRE) -- Torex Gold Resources Inc. (the “Company” or “Torex”) (TSX: TXG) is pleased to announce that the Company has repaid early the remaining $40 million of debt in relation to the 2019 Debt Facility and is now debt free other than approximately $5 million of finance leases.
In addition, the Company’s wholly-owned subsidiary Minera Media Luna, S.A. de C.V. (“MML”) has signed a Third Amended and Restated Credit Agreement with the same syndicate of lenders comprised of the Bank of Montreal, BNP Paribas, ING Bank, The Bank of Nova Scotia, and Societe Generale (the “Banks”) in connection with a two-year senior secured $150 million revolving debt facility (“2021 Revolving Facility”).
The Company may use the 2021 Revolving Facility for general corporate and working capital purposes, including certain development expenditures and acquisitions, and can be used for letters of credit or funding of capital expenditures. The amended facility also allows Torex to make distributions to its shareholders in the aggregate amount of up to C$100 million, in all cases subject to the conditions of the 2021 Revolving Facility.
Jody Kuzenko, President & CEO of Torex, stated:
“With no remaining long-term debt, Torex has never been in a stronger financial position. The markedly enhanced terms our partner Banks have granted through this latest refinancing agreement reflects the strength of our balance sheet and underlying cash flow potential of our El Limón Guajes complex (“ELG”). Importantly, the amended facility allows for greater financial flexibility as we lay the foundation for our future in Morelos and beyond.”
Lesen Sie auch
Andrew Snowden, Chief Financial Officer of Torex, stated:
“The intent of the refinancing was to loosen the restrictions and covenants in place from our initial project financing when our operations were less mature and advanced to covenants more inline with a corporate level facility. With the Company’s robust cash balance and the ongoing support of the banking syndicate the Company now has significant financial flexibility to develop Media Luna and other future projects, a reduced cost of debt, and can potentially return excess capital to shareholders.”