The Term Loan provides Saloro with additional liquidity support as it establishes mining operations on the main orebody at Barruecopardo, Ormonde said.
Saloro can draw in tranches of at least €500,000 with interest at a rate of 18% per annum on drawn funds and a 3% pa commitment fee on undrawn amounts.
The JV has the option to replace the loan with cheaper sources of finance and discussions are underway with third-party banks.
Oaktree’s original US$100mln loan will also be accrued in full, at a rate of 15%, over new loan’s 12-month term.
This will revert to 7% cash interest and 5% payment in kind (PIK) interest at the end of this period, should certain financial covenant tests be achieved, or 7% cash interest and 7% PIK interest if tests are not achieved.
Ormonde has 30% stake in Saloro with Oaktree owning the remainder.