McEwen Mining closed a $50 million senior secured 3-year term loan facility with Royal Capital Management serving as agent for the lenders.
Rob McEwen, chairman and chief owner of the mining company, will participate as a lender for $25 million of the term loan.
The principal amount of the loan will bear monthly interest at 9.75% per annum. Repayment will occur in twelve equal monthly instalments of $2 million during the third year, with the remaining balance due on maturity.
The loan can be retired in full or in part anytime during the first two years upon payment of the principal and accrued interest plus a fee linked to the remaining life of the loan, and during the third year upon payment of the remaining principal and accrued interest plus a fee equal to 3% of the remaining principal.
The loan will be used to complete construction of the Gold Bar Mine in Nevada and for general corporate purposes. Completed construction of Gold Bar is anticipated by the end of 2018, with commercial production to begin the first quarter of 2019.
