Candelaria Mining Corp (CVE:CAND) (OTCPINK:CDELF) announced it had entered into a US$9 million load facility to finance construction of the exploration company’s Pinos gold project in Mexico.
Pinos is an underground gold development project in Zacatecas - the second biggest gold producing state in Mexico after Sonora.
Under the agreement terms, Mexico’s Accendo Banco SA will provide the Vancouver-based company with the loan facility, which will be secured against Candelaria’s assets. In addition to Pinos, the company owns the Caballo Blanco project.
READ: Candelaria Mining brings in C$1.1 million from previously announced private placing
The loan bears an annual interest rate of 13% and has a 60-month term from the initial draw date. Candelaria may draw US$500,000 upon the loan’s execution, with the balance to be made on completion of the final loan documentation.
Accendo will receive a cash fee of 2% of the total facility as well as 18 million Candelaria warrants exercisable at C$0.11 per share for a 60-month period.
Candelaria said Accendo’s chairman Javier Reyes resigned as a director of the mineral explorer in order to comply with bank internal requirements.
Pinos hosts a measured resource of 4,444 ounces of gold and 228,892 ounces of silver and an indicated resource of 20,586 ounces of gold and 267,745 of ounces of silver.
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