Scotiabank Expands Fortuna Facility
Fortuna Silver Mines amended and expanded its existing $40 million revolving credit facility with the Bank of Nova Scotia. The new credit facility consists of a $40 million non-revolving term loan and a $20 million revolving credit facility. The $40 million term loan has a four- year duration.
Along with the $40 million term loan, the company is entering into an interest rate hedge that will result in an expected effective rate between 4.0% and 4.5%, depending on the facility’s pricing arrangement based on the company’s leverage ratio.
The proceeds of the credit facility may be used for working capital requirements and general corporate purposes. The facility is intended to complement Fortuna’s strong cash position and provide additional financing flexibility during the 50% expansion to 3,000 tpd of the San Jose mine.
Fortuna is a silver and base metal producer focused on mining opportunities in Latin America.