Show me another Junior Producer that can obtain a credit facility of this quality. These lending banks employ professionals in this field. They know what they are doing and do not risk their capital.
Part of today's announcement:
Debt Facility
The Company has completed arrangements for a $30 million revolving credit facility (the “Facility”). Bank of Montreal (“BMO”) acted as lead arranger, bookrunner and the administrative agent for the Facility. In addition to BMO, The Bank of Nova Scotia is also participating as a lender. The three-year Facility remains undrawn at present but is immediately available. The Facility includes customary terms and conditions, will initially bear interest of LIBOR plus 2.50% and subsequently on a sliding scale between 2.25% to 3.25%. Standby fees for the undrawn portion of the Facility are also on a similar scale basis between 0.51% and 0.73%. The uses of proceeds are for general corporate purposes and future project development, possibly including, San Agustin.
Dave Ponczoch, CFO of Argonaut Gold, stated: “Our strong balance sheet and projected cash flows provide us an opportunity to access funds at a low cost of capital. The funds from the Facility combined with current cash on hand and internal cash generation will be available to fund growth opportunities such as the development of San Agustin.”
