Klondex Mines closed a $25 million secured revolving credit facility with Investec Bank, which may be used for working capital requirements and general corporate purposes.

“Our company’s financial and operational performance continue to improve year over year. This performance has strengthened our balance sheet to a point where we now have access to capital at competitive rates,” said Paul Andre Huet, Klondex president and CEO.

Amounts borrowed under the credit facility will incur variable interest at LIBOR plus an applicable margin ranging from 2.75% to 4.00% as determined by a measure of the company’s debt to EBITDA plus 0.35% as long as the gold purchase agreement balance with Franco-Nevada Corporation exceeds $10 million. The credit facility is secured by all of the assets of the company and its subsidiaries on a pari-passu basis with the gold purchase agreement with Franco-Nevada. The facility matures in two years with an annual renewal option. The credit facility contains representations, restrictions, covenants and events of default as are customary for agreements of this type.

Vancouver, Canada-based Klondex Mines is a gold and silver mining company focused on exploration, development and production in a safe, environmentally responsible and cost-effective manner.