19:17:39 EST Sat 16 Nov 2019
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Amerigo Resources Ltd
Symbol ARG
Shares Issued 180,169,351
Close 2019-09-30 C$ 0.70
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Amerigo completes refinancing of MVC debt facilities

2019-09-30 10:22 ET - News Release

Mr. Rob Henderson reports

AMERIGO COMPLETES REFINANCE OF MVC DEBT FACILITY

Amerigo Resources Ltd.'s wholly owned Chilean subsidiary, Minera Valle Central (MVC), has completed a refinance of its debt facilities, as initially announced in the company's news release dated Aug. 6, 2019.

MVC obtained debt facilities of $99.7-million (U.S.) in 2015 and 2017 to finance the Cauquenes expansion, with an original term to Dec. 31, 2021. At the time of refinance, the facilities had an outstanding principal of $56.25-million (U.S.).

Under the refinance provisions, the principal outstanding was structured as a four-year senior secured term loan facility of $56.25-million (U.S.), provided jointly by MVC's existing lenders, Scotiabank Chile and Export Development Canada.

The new facility has a maximum repayment term of four years to Sept. 26, 2023, that may be shortened without penalty, in accordance with the provisions of the agreement in respect of the new facility. Seven semi-annual instalments of 8.33 per cent of the new facility ($4,685,625 (U.S.)) are to be made starting on March 26, 2020, together with accrued interest. A final instalment of 41.69 per cent of the new facility ($23,450,625 (U.S.)), plus accrued interest, is to be made on Sept. 26, 2023. Any prepayments made during the term of the new facility will reduce the amount due on the final instalment.

Rob Henderson, Amerigo's president and chief executive officer, commented: "This refinance of debt facilities provides MVC with additional flexibility and substantially reduces liquidity exposure for the company. I would like to take this opportunity to thank Scotiabank Chile and Export Development Canada for their ongoing strategic support to MVC and its operations."

About Amerigo Resources Ltd.

Amerigo Resources is an innovative copper producer with a long-term relationship with Corporacion Nacional del Cobre de Chile (Codelco), the world's largest copper producer.

Amerigo produces copper concentrate at the MVC operation in Chile by processing fresh and historic tailings from Codelco's El Teniente mine, the world's largest underground copper mine.

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