Sprott, Minera Tres announce $45 million facility for copper project

By Sarah Lizee

Olympia, Wash., Aug. 14 – Sprott Resource Holdings Inc. and subsidiary Minera Tres Valles got a mandate letter for a $45 million secured prepayment facility provided by Anglo American Marketing Ltd. and Kimura Capital LLP to be used for the expansion of Minera Tres Valles’ copper project located in Chile.

An amount of $5 million of the facility will be used to repay debt financing previously provided by the Sprott to Minera Tres Valles.

The facility has a 12-month availability period and a term of four years.

Interest is Libor plus 800 basis points for up to 12 months, depending on some conditions, and Libor plus 625 bps onwards.

The facility is repayable in 12 equal quarterly installments starting the first month following the 12-month grace period starting on the closing date.

The facility has early repayment flexibility and a copper price participation mechanism if London Metal Exchange cash price monthly average is above $6,600 per month.

The lenders will have offtake rights to purchase up to 100% of copper cathode production at Minera Tres Valles.

Toronto-based Sprott acquires and grows a portfolio of cash-flowing businesses and businesses expected to cash flow in the natural resource sector. Minera Tres Valles is an operating mining complex located 300 kilometers northeast of Santiago, Chile in Region IV near the town of Salamanca.

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