Mr. David Wolfin reports
AVINO ANNOUNCES FURTHER EXTENSION OF CONCENTRATES PREPAYMENT AGREEMENT WITH SAMSUNG C&T
Avino Silver & Gold Mines Ltd.'s concentrates prepayment agreement with Samsung C&T U.K. Ltd., originally announced on July 9, 2015, as amended, has been further extended for repayment of the balance of the principal amount of $6,666,670 (U.S.) to Samsung over a two-year period starting October, 2019, in return for exclusive concentrate deliveries.
Pursuant to a new amending agreement, Avino will sell concentrates on an exclusive basis to Samsung until December, 2024. Samsung has previously advanced to Avino a term facility in the sum of $10-million (U.S.) for such concentrates, of which Avino has repaid $3,333,330 (U.S.) for a net amount owing of $6,666,670 (U.S.), and the facility will be repaid with interest from Avino's future shipments of concentrates. There will be a 12-month deferral period from October, 2018, through and including September, 2019, during which there are no repayments of principal. Avino will then repay the balance with interest by 23 equal monthly instalments of $277,777 (U.S.), commencing October, 2019, and ending August, 2021, followed by a single and final payment of $277,799 in September, 2021. Interest on the facility is payable monthly at LIBOR (London interbank offered rate) plus 6.75 per cent during the first 12-month deferral period. Other material terms of the facility remain unchanged. The company is pleased to take advantage of this extension of the concentrate sales agreement and revised repayment arrangement with Samsung, as this ensures a steady long-term contract for the sale of the company's concentrates, and will provide capital to Avino to further advance and expand its projects over the next 12 months.
"We are very pleased to have worked with Samsung C&T since July, 2015," said David Wolfin, president and chief executive officer. "Extending the original contract shows that the relationship is beneficial to both parties. We are pleased that Samsung C&T, one of the world's most recognizable companies, views Avino as a trusted partner, and we thank them for their ongoing support."
The company's payment of all amounts owing to Samsung is secured by a pledge to Samsung of all of Avino's common shares in Bralorne Gold Mines Ltd. as collateral. Bralorne Gold Mines owns the Bralorne property located near Gold Bridge, B.C.
About Avino Silver & Gold Mines Ltd.
Avino is a silver and gold producer with a diversified pipeline of gold, silver and base metals properties in Mexico and Canada employing approximately 500 people. Avino produces from its wholly owned Avino and San Gonzalo Mines near Durango, Mexico, and is currently evaluating the potential economics of possible future production at the Bralorne gold mine in British Columbia, Canada. The company's gold and silver production remains unhedged.
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