Mr. Joseph Grosso of Golden Arrow reports
GOLDEN ARROW ANNOUNCES ENTERING INTO CREDIT AGREEMENT
Golden Arrow Resources Corp. has entered into a credit agreement dated as of July 6, 2018, with SSR Mining Inc. for a non-revolving term loan in an aggregate principal amount equal to $10-million (U.S.). The loan matures on the date which is the earlier of: (a) the date which is 24 months from the first delivery of ore from the Puna Operations Inc. joint venture's Chinchillas property to the Pirquitas mill; and (b) Dec. 31, 2020.
"We are very grateful to SSR Mining for granting a line of credit for up to $10-million (U.S.), which is strictly confined to meeting Golden Arrow's funding requirements for the Puna Operations joint venture in Jujuy," stated Joseph Grosso, president and chief executive officer of Golden Arrow. "With the project continuing to progress on budget, we expect this funding to ensure the Chinchillas integration with the Pirquitas mill while minimizing dilution to Golden Arrow's shareholders."
The proceeds borrowed under the credit agreement will be used by Golden Arrow to finance its contributions under the shareholder agreement entered into between Golden Arrow and SSR Mining on May 31, 2017, as sole shareholders of Puna Operations. The loan is secured by the company's ownership and equity interests in Puna Operations.
The loan will bear interest (computed on the basis of the actual number of days elapsed over a year of 365 days and compounded monthly) at a rate per year equal to the U.S. base rate (as such term is defined in the credit agreement) plus 10 per cent. Interest on the loan shall accrue from and including the date of each borrowing under the credit agreement, compounded monthly, and shall be capitalized and payable on the maturity date.
The company has agreed to pay to SSR Mining a commitment fee of $100,000 (U.S.) on the date upon which the initial borrowing under the credit agreement is made.
The credit agreement includes prepayment provisions as well as the usual and customary representations and warranties and covenants and negative covenants restricting the amount of indebtedness.
About Golden Arrow Resources Corp.
Golden Arrow is an exploration company earning production income. The company has a successful record of creating value by making precious and base metal discoveries and advancing them into exceptional deposits. Golden Arrow owns a 25-per-cent share of Puna Operations, a joint venture operated by SSR Mining, with more than eight years of forecast production and upside potential at the Pirquitas-Chinchillas silver mining project. Golden Arrow is actively exploring on its more than 200,000 hectares of properties in Argentina.
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