Discovery Silver entered into an agreement with a syndicate of financial institutions for a revolving credit facility that allows the company to borrow up to $250 million, with an accordion feature for an additional $100 million subject to receipt of additional lender commitments and satisfaction of certain other conditions. The syndicate includes BMO, acting as administrative agent and lender, BMO Capital Markets, acting as sole bookrunner and co-lead arranger, and CIBC and National Bank of Canada acting as co-lead arrangers, co-syndication agents and lenders.
“The revolving credit facility we have arranged with the syndicate will provide both increased financial capacity and greater flexibility as we advance our attractive growth profile in both Canada and Mexico,” Tony Makuch, CEO of Discovery, said. “We appreciate the support BMO, CIBC and NBC have demonstrated in entering into the agreement with Discovery and look forward to working with them as we continue to build the value of our company.”
The facility will mature on Sept. 15, 2028, and is available for general corporate and working capital purposes, including financing future investments as the company advances its growth strategy. The facility includes terms and conditions customary for a transaction of this nature, and is secured by all assets of the company and its material subsidiaries. Advances under the facility are subject to the satisfaction of certain customary conditions precedent.
Following the entering into of the agreement, Discovery will terminate the existing term loan agreement with Franco-Nevada GLW involving a $100 million senior debt facility, entered into as of April 15, 2025, which remained undrawn as of the date of termination.
