Primero Mining has entered into a binding term sheet with Sprott Resource Lending Partnership for a $75 million three-year term loan.

The facility is intended to refinance the company’s existing $75 million revolving credit facility, of which $50 million is currently drawn, and partly for general corporate purposes.

Sprott has concluded technical due diligence and the binding term sheet is subject to execution of definitive transaction documents, all regulatory and other third party approvals and satisfaction of other customary conditions precedent, the facility is expected to be closed this quarter.

Primero Mining is a Canadian-based precious metals producer that owns 100% of the San Dimas gold-silver mine and the Cerro del Gallo gold-silver-copper development project in Mexico and 100% of the Black Fox mine and adjoining properties in the Township of Black River Matheson near Timmins, ON.