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Silvercrest Metals Inc
Symbol SIL
Shares Issued 146,486,264
Close 2022-11-29 C$ 8.33
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Silvercrest arranges $120M (U.S.) refinancing package

2022-11-29 09:23 ET - News Release

Mr. N. Eric Fier reports

SILVERCREST ANNOUNCES US$120 MILLION DEBT REFINANCING PACKAGE, REDUCTION OF OVERALL DEBT AND LOWER COST OF CAPITAL

Silvercrest Metals Inc. has refinanced its $120-million (U.S.) secured project financing facility, of which only $90-million (U.S.) was drawn, with a new $120-million (U.S.) senior secured credit facility through a syndicate of lenders comprising Bank of Nova Scotia (the administrative agent) and Bank of Montreal.

The credit facility includes a $50-million (U.S.) term facility and a $70-million (U.S.) revolving facility. On closing of the credit facility, the company fully drew the $50-million (U.S.) term facility and will use $40-million (U.S.) of its cash balance to repay the existing $90-million (U.S.) project financing facility, which was with an affiliate of RK Mine Finance. The revolving facility of $70-million (U.S.) will be available to the company until Nov. 27, 2026, for general corporate purposes and working capital. On closing of the credit facility and repayment of the project financing facility, the company will have an estimated cash balance of $50-million (U.S.), total debt of $50-million (U.S.) and undrawn revolving facility of $70-million (U.S.).

N. Eric Fier, CPG, PEng, chief executive officer, commented: "We would like to express our gratitude to RK for their partnership and support during the construction of Las Chispas. Having declared commercial production at Las Chispas with $91-million (U.S.) of cash on the balance sheet as of Nov. 1, 2022, we are happy to transition to a facility that allows us to obtain greater flexibility and significantly lower our cost of capital at the same time. Our strong cash position, coupled with this credit facility, will allow us to manage the risks and opportunities as we enter our first full year of production."

Key terms of the term facility include:

  • $50-million (U.S.) term facility;
  • Three-year term with a maturity date of Nov. 28, 2025;
  • Interest rate is initially based on an adjusted term SOFR (secured overnight financing rate), plus an applicable margin ranging from 2.50 per cent to 3.75 per cent; the applicable term SOFR margin will be set at 3.00 per cent until June 30, 2023;
  • Repayment in consecutive equal quarterly instalments commencing June 30, 2023, until the term facility maturity date;
  • Amounts repaid under the term may not be reborrowed.

Key terms of the revolving facility include:

  • $70-million (U.S.) revolving facility;
  • Four-year term, with a maturity date of Nov. 27, 2026;
  • Interest rates are the same as the term facility; the undrawn portion of the revolving facility will be subject to a standby fee ranging from 0.5625 per cent to 0.8438 per cent per annum;
  • The revolving facility is available to the company subject to customary conditions precedent;
  • Amounts repaid under the revolving facility may be reborrowed until the maturity date of the revolving facility.

About Silvercrest Metals Inc.

Silvercrest is a Canadian precious metal exploration and production company headquartered in Vancouver, B.C., that is focused on new discoveries, value-added acquisitions and production assets in Mexico's historic precious metal districts. The company's principal focus is operating its Las Chispas mine in Sonora, Mexico. Silvercrest's continuing initiative is to increase its asset base by expanding current resources and reserves, acquiring and developing high-value precious metal projects, and ultimately operating multiple silver-gold mines in the Americas. The company is led by a proven management team in all aspects of the precious metal mining sector, including taking projects through discovery, finance, on-time and on-budget construction, and production.

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