Alamos Gold amended its existing undrawn revolving credit facility, including an increase from $400 million to $500 million on more favorable terms.

The company will benefit from improved pricing under the amended facility, including undrawn fees of 0.42% and drawn fees of LIBOR plus 1.875% at its current leverage ratio. This is down from undrawn fees of 0.45% and drawn fees of LIBOR plus 2.00% under the previous credit facility. The facility remains undrawn, and the company is debt free with cash and cash equivalents of $186 million as of September 30, 2019. The maturity date of the facility has been extended to December 17, 2023.

“The increase in our facility on more attractive terms is a reflection of the increased scale of Alamos as well as our strong operating and financial outlook. Combined with our existing cash, this further strengthens our financial flexibility with no debt and nearly $700 million of available liquidity,” said Jamie Porter, CFO.

The amended facility was joint-led by the Bank of Nova Scotia, BMO Capital Markets, and TD Securities. The Canadian Imperial Bank of Commerce, National Bank of Canada, and ING Capital are other members of the lending syndicate.

Alamos is a Canadian-based intermediate gold producer with diversified production from three operating mines in North America. This includes the Young-Davidson and Island Gold mines in northern Ontario