Gunnison Copper Corp (TSX:GCU, OTCQB:GCUMF) said it has fully repaid the US$7.3 million non-convertible portion of its credit agreement with Nebari Natural Resources Credit Fund I LP, marking a key step in its plan to reduce debt.
The repayment leaves only the US$5.25 million convertible principal outstanding under the Second Amended and Restated Credit Agreement.
Nebari still has the right to convert that amount to equity under previously disclosed terms, the company said.
Gunnison added that the remaining balance is smaller than the net proceeds it expects to receive from monetizing its 48C tax credits.
"Reducing and ultimately eliminating debt has been a core objective of management," Craig Hallworth, the company’s senior vice president and chief financial officer, said in a statement.
Hallworth added that paying off the non-convertible portion of the Nebari financing "marks a major step forward in strengthening our balance sheet and capital structure" and advances the goal of fully retiring the remaining secured debt.