Northern Vertex Mining signed a senior secured credit facility with Sprott Private Resource Lending, an affiliate of Sprott Resource Lending, for up to $20 million to fund development costs of the company’s Moss Gold/Silver Project in Northwest Arizona.
The facility is available to be drawn in four tranches, and the first tranche of $5 million has been advanced to the company’s wholly-owned subsidiary, Golden Vertex.
Kenneth Berry, the company’s president and CEO, stated: “We are delighted to have signed the Sprott Facility that will allow us to fast-track the development of the Moss Mine Gold-Silver project to commercial production.”
The facility contains various terms and conditions, including:
- No hedging
- No warrants
- An initial tranche of $5 million which has been drawn
- Further tranches up to $15 million in up to three additional tranches, subject to the satisfaction of certain conditions precedent, including the receipt of all key permits
- Maturity date of November 4, 2019
- Prepayment will be permitted at any time without penalty, subject to a minimum of 6 months interest having been paid on prepaid amounts
- An interest rate of 12-month LIBOR+ 8%, to be paid monthly