Excelsior Mining agreed with Nebari Natural Resources Credit Fund I to extend the maturity date of its existing $15 million credit facility to Sept. 29, 2023. In addition, subject to the satisfaction of certain conditions, Nebari agreed to provide an additional $15 million credit facility (increasing the total facility to $30 million) and further extend the maturity date of the facility to July 31, 2024.
“Nebari has been an excellent partner in the development of the Gunnison Project,” Stephen Twyerould, CEO of Excelsior Mining, said. “This extension and the additional funding availability leave Excelsior well positioned to move ahead with its strategy to restart and operate the Johnson Camp mine to produce cash flow, while Gunnison ramps up and the raffinate neutralization plant is designed and constructed.”
To complete the extension of the facility, Excelsior and Nebari entered into an amended and restated credit agreement. The facility increase provides for an initial draw of $5 million and two additional draws of $5 million each at the sole option of Excelsior Arizona. There are no common shares, warrants or other convertible securities issuable to Nebari in connection with the amended and restated credit agreement. As Twyerould mentioned, Excelsior will use the proceeds of the facility to restart its Johnson Camp open pit mining operations. In addition, the company will use additional proceeds to establish a new heap leach facility and achieve associated copper production.
Each of the first extension, the second extension and the facility increase are subject to certain consents from Triple Flag International. The facility increase and second extension are also subject to certain additional conditions, including completion of additional due diligence by Nebari, receipt of all required permits for Excelsior’s Johnson Camp operating plan, additional security over its Strong & Harris Project and conclusion of certain agreements with Triple Flag.
In order to proceed with the amended and restated credit agreement, certain consents and agreements are required from Triple Flag related to the existing copper purchase and sale agreement (the stream agreement). Triple Flag agreed to amend the stream agreement to permit the first extension in exchange for the removal of the Excelsior’s right to repurchase, in certain circumstances, a portion of the metal stream and the re-pricing of Triple Flag’s existing 3.5 million common share purchase warrants (the warrants) to have an exercise price of $0.54 ($0.42) per common share (25% premium to current market price) from a prior exercise price of C$1.50 ($1.17). Triple Flag further agreed to amend the stream agreement to permit the facility increase and second extension, subject to the satisfaction of certain conditions. These conditions include Triple Flag and Nebari reaching agreement on certain security matters.
The amendment to the terms of the warrants is subject to the approval of the Toronto Stock Exchange. There is no assurance that the conditions to the facility increase or second extension will be satisfied.
