Daily News: August 5, 2019

Scotiabank, ING, Others Provide $335MM Facility for Torex Gold


Torex Gold Resources’ subsidiary Minera Media Luna amended its credit agreement with Bank of Montreal, BNP Paribas, ING Bank, Dublin Branch, Société Générale and the Bank of Nova Scotia in connection with a secured $335 million debt facility.

The debt facility is an amendment and restatement of the secured $400 million debt facility entered into on July 21, 2017. It is comprised of a $185 million term loan and a $150 million revolving loan facility. All conditions precedent to the initial advance under the debt facility have been satisfied as of July 30, 2019, and at that date, the full amount of the term facility and $100 million of the revolver is
outstanding.

Proceeds of the term facility and the revolving facility were used to refinance the 2017 facility. The company may use the Revolving Facility for general corporate purposes, including certain development expenditures and acquisitions, in all cases subject to the conditions of the debt facility.

“The amended debt facility provides the company with greater financial flexibility to fund our future growth projects. the strong support exhibited by our partner banks, is a direct result of the productive relationship which has been established over the years, as well as recognition by our partners in the cash flow potential of El Limón Guajes,” said Fred Stanford, president and CEO of Torex.

The debt facility has a lower interest rate and a revised repayment schedule for the term facility as compared to the 2017 facility. the debt facility permits, including by use of the revolving facility, potential spending to facilitate the development of the Media Luna Project, the Muckahi mining system, and other existing or future projects of the company, subject to the conditions of the debt facility.

The facility bears interest at a rate of LIBOR + 3% and includes standard and customary finance terms and conditions including with respect to fees, representations, warranties, covenants and conditions precedent to additional draws under the revolving facility. The Debt Facility is secured by all of the assets of MML and secured guarantees of the Company and certain of its other subsidiaries. The revolving facility and the term facility may be repaid in full at any time without penalty or premium.

Torex was advised by Cassels Brock & Blackwell (Canadian Counsel) and Sánchez-Mejorada, Velasco y Ribé (Mexican Counsel). The banks were advised by Fasken Martineau DuMoulin (Canadian Counsel), Ritch Mueller, (Mexican Counsel) and Hatch (Independent Engineer).
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Torex is an intermediate gold producer based in Canada, engaged in the exploration, development and operation of its 100% owned Morelos Gold Property located 180 kilometers southwest of Mexico City.