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Construction|PROJECT
Construction|PROJECT
construction|project

SilverCrest refinances $120m project facility

30th November 2022

By: Mariaan Webb

Creamer Media Senior Deputy Editor Online

     

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Vancouver-headquartered SilverCrest has refinanced its $120-million secured project facility, of which it had drawn $90-million, with a new senior secured credit facility through a syndicate of lenders comprising The Bank of Nova Scotia and Bank of Montreal.

The new $120-million credit facility includes a $50-million term facility and a $70-million revolving facility.

On closing of the credit facility, the company fully drew the $50-million term facility and will use $40-million of its cash balance to repay the existing $90-million project financing facility, which was with an affiliate of RK Mine Finance (RK).

The revolving facility of $70-million will be available to SilverCrest until November 27, 2026, for general corporate purposes and working capital.

On closing of the credit facility and repayment of the project financing facility, the company will have an estimated cash balance of $50-million, total debt of $50-million and undrawn revolving facility of $70-million.  

CEO Eric Fier expressed SilverCrest’s gratitude to RK for its partnership and support during the construction of Las Chispas mine, in Mexico.

“Having declared commercial production at Las Chispas with $91-million of cash on the balance sheet as of November 1, 2022, we are happy to transition to a facility that allows us to obtain greater flexibility and significantly lower our cost of capital at the same time. Our strong cash position coupled with this credit facility will allow us to manage the risks and opportunities as we enter our first full year of production."

Edited by Creamer Media Reporter

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