Wells Fargo, Bank of Nova Scotia Amend Allied Nevada Revolver
Allied Nevada Gold has signed a third amended and restated credit agreement with The Bank of Nova Scotia and Wells Fargo Bank that increases the available borrowing capacity of the facility to $75 million, from $40 million.
The credit agreement amends the Second Amended and Restated Credit Agreement, entered into with The Bank of Nova Scotia dated as of December 27, 2013, as follows:
- The amount available to borrow under the Credit Agreement will be determined by a Borrowing Base (primarily 80% of the value of inventory on the leach pads) as defined in the Credit Agreement.
- The Credit Agreement will have a maturity date of April 30, 2016.
- The Credit Agreement includes covenants to maintain (i) a post-maturity.
- Reserve Tail, as defined in the Credit Agreement, of 600,000 recoverable gold equivalent ounces, (ii) a Current Ratio, as defined in the Credit.
- Agreement, of not less than 1.25 and (iii) a minimum cash balance of $10 million.
“We are pleased to have the support and partnership of Wells Fargo Bank, in addition to the continued support of The Bank of Nova Scotia, with our near-term financing initiatives,” comments Steve Jones, Executive Vice President & CFO. “The increased revolver will provide us with additional liquidity as we focus on generating cash from the current operations and the longer term goal of financing and building the mill at Hycroft.”
A copy of the Third Amended and Restated Credit Agreement has been filed with the U.S. Securities and Exchange Commission on Form 8-K, dated May 9, 2014.