Wesdome Gold Mines executed an amended and restated credit agreement that upsizes its senior secured revolving credit facility, led by National Bank Financial (NBF) to $80 million immediately and to $150 million upon declaration of commercial production at Kiena. The facility also features more favorable covenants, lowers the margin of borrowing and extends the term to Aug. 25, 2025 from March 29, 2024.
“With this facility and ongoing free cash flow generation from our Eagle River mine, Wesdome maintains significant financial liquidity and flexibility as we look towards ramping up Kiena in the near term,” Duncan Middlemiss, CEO of Wesdome Gold Mines, said.
The credit facility is secured by all of the company’s present and future real and personal property. The NBF Facility is available by way of Canadian dollar prime rate or U.S. dollar base rate, with interest rates ranging from 1.75% to 2.75% over NBF’s prime rate or base rate, as applicable, Canadian dollar bankers’ acceptances at acceptance fees ranging from 2.75% to 3.75% and U.S. dollar secured overnight financing rate (SOFR), with interest rates ranging from 2.75% to 3.75% over SOFR. The actual spread or rate will be determined based on the company’s net leverage ratio. The NBF facility is also available for letters of credit and will be used for general corporate and working capital purposes.