Horizon Copper entered into a revolving credit agreement with National Bank of Canada and The Bank of Nova Scotia, allowing the company to borrow up to $30 million with an additional uncommitted accordion of up to $20 million, for total availability of up to $50 million. The revolving loan has a term of four years, maturing in September 2028, and is extendable subject to approval by the lenders.
Horizon intends to use the revolving loan for future asset acquisitions, its funding requirements related to the development of the Hod Maden project and general corporate purposes. The amounts drawn on the revolving loan are subject to interest at SOFR plus a variable spread of between 2.50% – 3.75%, and the undrawn portion of the revolving loan is subject to a standby fee of between 0.56% – 0.84% per annum, both of which are dependent on the company’s leverage ratio.
Under the terms of the credit agreement, the company is required to maintain a leverage ratio of less than 4.0x, excluding all existing debt held by Horizon’s strategic growth partner, Sandstorm Gold.
“We are pleased to expand our financing capabilities with this new revolving loan,” Erfan Kazemi, president and CEO of Horizon Copper, said. “This credit facility, coupled with our existing cash reserves, improves Horizon’s financing flexibility as we look to grow the company and continue to invest in the development work at Hod Maden.”
