Amaroq Minerals Ltd announced a substantial financial boost with a new agreement for $35 million in revolving credit facilities from Landsbankinn.
The deal replaces their existing undrawn credit facilities, providing increased liquidity and financial flexibility.
The financing package includes a $28.5 million facility, primarily for completing the Nalunaq development, with a 9.5% interest rate that will drop to 7.5% under certain conditions.
Additionally, a $6.5 million facility is available for general corporate purposes.
The agreement involves a 1.5% arrangement fee, a 0.4% commitment fee on unused amounts, and a maturity date of October 1, 2026.
CEO Eldur Olafsson expressed satisfaction with the arrangement, highlighting the benefits of consolidating their debt structure under a single agreement with more favorable rates.
“In addition to simplifying the structure of our debt package under one single agreement at more favourable rates, the new facilities strengthen our liquidity and provide us with further financial flexibility for years to come,” Olafsson said in a statement.
"With a long-term debt agreement now secured for general purposes, we are committed to maintaining a strong capital management plan as we progress the development of our cornerstone Nalunaq project in South Greenland towards First Gold this year."
Finalization of the legally binding documentation is expected by the end of the year. Current debt holders, including Fossar Investment Bank and others, will be part of the final agreement.