Mr. Eldur Olafsson reports
HEADS OF TERMS AGREED FOR US$35 MILLION REVOLVING CREDIT FACILITY
Amaroq Minerals Ltd. has agreed heads of terms, subject to final documentation, with Landsbankinn for $35-million (U.S.) in three revolving credit facilities, securing a substantial increase and extension to its current debt facilities.
Eldur Olafsson, Amaroq chief executive officer, commented:
"We are very pleased to have successfully arranged a substantial increase and extension of our currently undrawn debt financing package with Landsbankinn. In addition to simplifying the structure of our debt package under one single agreement at more favourable rates, the new facilities strengthen our liquidity and provide us with further financial flexibility for years to come.
"With a long-term debt agreement now secured for general purposes, we are committed to maintaining a strong capital management plan as we progress the development of our cornerstone Nalunaq project in south Greenland towards first gold this year."
Highlights:
- The financing replaces the previously undrawn credit facilities, simplifying the structure of the debt package, and strengthens liquidity for the company, increasing financial flexibility.
- Amaroq has signed term sheets for a $35-million (U.S.) debt financing package with Landsbankinn, consisting of:
- $28.5-million (U.S.) facility with a margin of 9.5 per cent per annum, reducing to 7.5 per cent once the full amount has been drawn and the company's cumulative EBITDA (earnings before interest, taxes, depreciation and amortization) over a three-month period exceeds $6-million (Canadian). This facility replaces the company's existing revolving credit facilities entered into on Sept. 1, 2023, but not the convertible debt facilities. Of the facility, $18.5-million (U.S.) is to be used toward the completion of the Nalunaq development, with the balance available for general corporate purposes;
- $6.5-million (U.S.) facility with a margin of 7.5 per cent per annum, available for general corporate purposes once all other facilities have been fully drawn;
- The facilities have a 1.5-per-cent arrangement fee, a 0.4-per-cent commitment fee on unutilized amounts and an expected maturity date of Oct. 1, 2026;
- The facilities will be subject to certain continuing covenant tests, further details of which will be provided on closing of definitive documentation.
- Amaroq will finalize the legally binding documentation for the facilities and expects to be in a position to sign binding documents before the end of the year. The company's currently undrawn $28.5-million (U.S.) of debt facilities will remain in place until this time.
- The final agreement with Landsbankinn will be finalized in agreement with current debt holders, which include Fossar Investment Bank, GCAM LP, JLE Property Ltd., First Pecos LLC and Linda Investments Ltd.
About Amaroq Minerals Ltd.
Amaroq Minerals' principal business objectives are the identification, acquisition, exploration and development of gold and strategic metal properties in southern Greenland. The company's principal asset is a 100-per-cent interest in the past-producing Nalunaq gold mine, which is due to go into production toward the end of 2024. The company has a portfolio of gold and strategic metal assets in southern Greenland, covering the two known gold belts in the region, as well as advanced exploration projects at Stendalen and the Sava copper belt, exploring for strategic metals such as copper, nickel, rare earths and other minerals. Amaroq Minerals is continued under the Business Corporations Act (Ontario) and wholly owns Nalunaq A/S, incorporated under the Greenland Public Companies Act.
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