Allied Nevada Gold announced that on December 27, 2013 it entered into the second amended and restated credit agreement with Scotiabank acting as agent.

The credit agreement amends the prior revolving credit facility entered into with the agent and other lenders dated as of October 31, 2012. The size of the revolving credit facility has been reduced from $120 million to $40 million, and cash-flow related covenants included in the prior agreement, specifically the leverage ratio and the interest coverage ratio, have been eliminated. In addition, the amount available to borrow under the credit agreement will be determined by a borrowing base (primarily the value of inventory on the leach pads) as defined in the credit agreement.

The credit agreement will have a maturity date of April 30, 2016, and includes covenants to maintain a post-maturity reserve tail, as defined in the credit agreement, of 600,000 recoverable, gold equivalent ounces and a current ratio, as defined in the credit agreement, of not less than 1.25.

The agreement includes an accordion feature allowing for an increase up to $75 million.

In connection with entering into the agreement, the company also entered into an amendment agreement and credit support annex to an ISDA Master Agreement with Société Générale and will enter into one with National Bank Canada whereby the company will be required, beginning no later than January 10, 2014, to either cash collateralize or post a letter of credit for any amount due to the lenders for the fair market value of the then current settlement cost of CDN $90 million of the cross-currency swap which was entered into between the lenders and the company in connection with the issuance of the company’s CDN $400 million 8.75% senior notes. Had the company been required to either cash collateralize or post a letter of credit with the Lenders as of December 27, 2013, the amount tendered would have been approximately $8.2 million. The company intends to utilize the credit agreement to post letters of credit with the lenders.

“We are pleased to have completed the revisions to the credit facility which will provide us with greater liquidity going forward by removing certain covenants that had become obstacles with the declining price of gold,” commented Steve Jones, EVP and CFO. “We will look to grow the credit agreement as provided by the accordion feature in 2014. We appreciate the support of The Bank of Nova Scotia and we look forward to 2014 as we focus on updating the pre-feasibility and feasibility studies for the Hycroft mill expansion.”