Alio Gold gets $15 million three-year loan via Sprott for leach pad

By Wendy Van Sickle

Columbus, Ohio, Nov. 15 – Alio Gold Inc. closed a $15 million three-year loan facility with Sprott Private Resource Lending II (Collector), LP, according to a Friday news release.

Proceeds will be used to fund construction of the company’s new phase II leach pad at Florida Canyon.

The facility will mature on Oct. 31, 2022. Borrowings bear interest at Libor plus 800 basis points with a 2% Libor floor.

The facility will amortize in eight equal quarterly payments beginning Jan. 31, 2021.

In conjunction with closing of the loan facility, Alio Gold issued 1,286,228 shares to Sprott.

The gold mining company is focused on production of gold from its 100% owned Florida Canyon mine in Nevada. The company also owns the San Francisco mine in Sonora, Mexico, and is developing its Ana Paula project in Guerrero, Mexico.

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