Golden Arrow Resources entered into a credit agreement with SSR Mining for a non-revolving term loan in an aggregate principal amount equal to $10 million.
“We are very grateful to SSR Mining for granting a line of credit for up to $10 million, which is strictly confined to meeting Golden Arrow’s funding requirements for the Puna Operations joint venture in Jujuy,” said Joseph Grosso, president and CEO of Golden Arrow. “With the project continuing to progress on budget, we expect this funding to ensure the Chinchillas integration with the Pirquitas Mill while minimizing dilution to Golden Arrow’s shareholders.”
The proceeds will be used to fund Golden Arrow’s contributions under the shareholders’ agreement entered into by Golden Arrow and SSR Mining on May 31, 2017 as sole shareholders of Puna Operations. The loan is secured by the company’s ownership and equity interests in Puna Operations.
The loan will bear interest at a rate per year equal to the U.S. Base Rate plus 10.0%. Interest on the loan will accrue from and include the date of each borrowing under the credit agreement, compounded monthly, and will be capitalized and payable on the maturity date.
The company has agreed to pay a commitment fee of $100,000 on the date upon which the initial borrowing under the agreement is made.
The credit agreement includes prepayment provisions as well as the usual and customary representations and warranties and covenants and negative covenants restricting the amount of indebtedness.
Golden Arrow is an exploration company earning production income.
