The Bank of Nova Scotia and BMO Provide $120MM Debt Refinancing Package to SilverCrest Metals

SilverCrest Metals refinanced its $120 million secured project financing facility, of which only $90 million was drawn, with a new $120 million senior secured credit facility through a syndicate of lenders comprised of The Bank of Nova Scotia and Bank of Montreal.

The credit facility includes a $50 million term facility and a $70 million revolving facility. On closing of the credit facility, the company fully drew the $50 million term facility and will use $40 million of its cash balance to repay the existing $90 million project financing facility, which was with an affiliate of RK Mine Finance. The revolving facility of $70 million will be available to the company until Nov. 27, 2026 for general corporate purposes and working capital. On closing of the credit facility and repayment of the project financing facility, the company will have an estimated cash balance of $50 million, total debt of $50 million and undrawn revolving facility of $70 million.

“We would like to express our gratitude to RK for their partnership and support during the construction of Las Chispas,” N. Eric Fier, CPG, P.Eng and CEO, said. “Having declared commercial production at Las Chispas with $91 million of cash on the balance sheet as of Nov. 1, 2022, we are happy to transition to a facility that allows us to obtain greater flexibility and significantly lower our cost of capital at the same time. Our strong cash position coupled with this credit facility will allow us to manage the risks and opportunities as we enter our first full year of production.”

Key terms of the Term Facility include:

• $50 million term facility

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• Three-year term with a maturity date of Nov. 28, 2025

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• Interest rate is initially based on an adjusted Term SOFR1 rate, plus an applicable margin ranging from 2.50% to 3.75%. The applicable Term SOFR margin will be set at 3.00% until June 30, 2023

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• Repayment in consecutive equal quarterly instalments commencing June 30, 2023, until the term facility maturity date

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• Amounts repaid under the term may not be re-borrowed.

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Key terms of the revolving facility include:

• $70 million revolving facility

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• Four-year term, with a maturity date of Nov. 27, 2026

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• Interest rates are the same as the term facility. The undrawn portion of the revolving facility will be subject to a standby fee ranging from 0.5625% to 0.8438% per annum

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• the revolving facility is available to the company subject to customary conditions precedent

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• Amounts repaid under the revolving facility may be re-borrowed until the maturity date of the revolving facility.

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