Great Panther Mining Limited said it had boosted its working capital with a further $25 million in new credit facilities from Asahi and Samsung.
The new funds provide the gold and silver miner with the resources to execute on its "objectives of replacing resources, extending mine life, and unlocking the regional potential of the Tucano gold mine," said Sandra Daycock, Great Panther's chief financial officer.
The firm has struck a $20 million gold doré prepayment agreement with Asahi Refining Canada Ltd - a wholly owned subsidiary of Asahi Holdings, and a $5 million lead concentrate prepayment deal with Samsung C&T UK Ltd (Samsung), a wholly-owned subsidiary of Samsung C&T Corporation.
"We have long-standing and highly valued relationships with both Asahi and Samsung and these transactions further solidify those partnerships," added Rob Henderson, CEO of Great Panther.
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"This year has not been without its challenges; however, we remain committed to generating shared value through our operations and these new funding facilities are a testament to our lenders' support of and belief in this mission."
Under the gold Doré agreement, Asahi will advance a $20 million prepayment to Great Panther in consideration for the equivalent value in gold to be delivered over 12 months in installments beginning in April 2022.
The prepaid Doré will be sold at a 0.5% discount to the spot price of gold at the time of delivery and will be used to offset repayments of the Asahi Advance. The Asahi Advance will bear interest at an annual rate of 1-month US dollar LIBOR plus 4.75%.
Under the other deal, Samsung has agreed to advance a $5 million pre-payment to Great Panther's Mexican subsidiary in consideration for exclusive offtake of the lead concentrate production from the Topia mine in Mexico up to a maximum contract quantity of 5,400 dry metric tonnes (DMT) representing around 21 months of output.
The agreement also gives Samsung a right of first offer on an additional 12 months of concentrate. The Samsung advance has an 18-month term and will be repaid in equal monthly installments beginning in April 2022. It will bear interest at an annual rate of 3-month US dollar LIBOR plus 6.5%.
Great Panther is a growing gold and silver producer focused on the Americas and has a diversified portfolio in Brazil, Mexico, and Peru that includes three operating gold and silver mines, an advanced development project, and a large land package with district-scale potential.
Contact the writer at giles@proactiveinvestors.com