Claude Resources announced it has entered into an agreement with The Bank of Nova Scotia (Scotiabank) for a senior secured credit facility consisting of a revolving tranche in the amount of $10.0 million and a term loan tranche in the amount of $15.0 million.

Claude said these facilities will be used to replace the company’s $19.9 million, 10% term loan managed by Crown Capital Partners and its undrawn revolving credit facility with Canadian Western Bank.

The revolver and term loan have a three year term maturing in September of 2018. The interest rate on both facilities will be dependent on the company’s total debt to EBITDA ratio and range between 3% to 4% over prime, or bankers’ acceptances plus a margin of 4% to 5%. The term loan will be repaid in equal installments of $1.25 million per quarter up to and including the maturity date. There is no penalty for early repayment on either facility.

“Our new partnership with one of North America’s premier mining lenders demonstrates the strength of our business plan and aligns with our strategy to focus on growing our free cash flow,” stated Rick Johnson, chief financial officer. “With continued free cash flow generation, a growing cash balance and a lower cost of capital, we have positioned the Company with the financial strength and flexibility to manage our capital needs and pursue growth opportunities.”