Torex Gold gets amended, restated $335 million credit agreement

By Rebecca Melvin

New York, July 31 – Torex Gold Resources Inc. has obtained an amended and restated credit agreement in connection with a secured $335 million debt facility, according to a company news release.

Torex Gold obtained the facility through its Minera Media Luna, SA de CV subsidiary.

The banks involved in the debt facility are Bank of Montreal, BNP Paribas, ING Bank NV, Dublin Branch, Societe Generale and the Bank of Nova Scotia.

The debt facility has a lower interest rate and a revised repayment schedule for the term facility compared to its facility inked in 2017. It includes by use of the revolving facility potential spending to facilitate the development of the Media Luna project, the Muckahi mining system, and other existing or future projects of the company, subject to the conditions, including compliance with financial covenants related to maintaining a net leverage ratio, debt service coverage ratio and a minimum cash balance and thresholds with respect to quantum of development expenditures and the amount spent on the Muckahi mining system.

In also removes certain covenants such as mandatory cash sweeps in the 2017 facility.

The facility bears interest at a rate of Libor plus 300 basis points and includes customary conditions.

Assets securing the facility are those of MML and secured guarantees of the company and certain of its other subsidiaries.

The revolver and the term facility will mature June 30, 2022; provided that the revolver will be reduced to $100 million on Dec. 31, 2021. The revolver and the term facility may be repaid in full at any time without penalty or premium.

The company was advised by Cassels Brock & Blackwell LLP and Sanchez-Mejorada, Velasco y Ribe. The banks were advised by Fasken Martineau DuMoulin LLP, Ritch Mueller, S.C. and Hatch Ltd.

Torex Gold is a Toronto-based gold producer operating in the Morelos gold property in Mexico.

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