Americas Gold and Silver Corporation Announces Transformational USD 100 Million Debt Financing

Published: 2025-06-03 08:36:03 ET USA.TO

Published on 06/03/2025 at 08:36

Americas Gold and Silver Corporation announced that it has arranged a USD 100 million of senior secured debt facility ("Term Loan Facility?) to be provided by a third party to be used primarily to fund growth and development capital spending at the Galena Complex. The USD 100 million Term Loan Facility consists of three tranches: a term loan with proceeds of USD 50 million that will be advanced at closing, and two additional tranches of USD 25 million. The Term Loan Facility consists of: A term loan with proceeds of USD 50 million to be advanced at closing.

The loan will be subject to an interest rate of SOFR (4% floor) plus 6% and will mature 60 months following the closing date. Principal will amortize over the term of the loan, with principal repayments commencing one year after the closing date and payable quarterly thereafter. Two additional USD 25 million tranches that will be available to AGS upon the achievement of certain conditions precedent.

The first such tranche will be subject to an interest rate of SOFR (4% floor) plus 6% after funding. The second tranche will be subject to an interest rate of SOFR (4% floor) plus 4% after funding. Principal will amortize over the term of the loan with principal repayments commencing one year after the closing date and payable quarterly thereafter.

The lender will hold senior security over all the Company?s assets and undertakings other than those relating to Americas Cosalá Operations located in Sinaloa, Mexico and its Relief Canyon Project located in Nevada USA, which are secured in priority to the lender by Trafigura and Sandstorm, respectively for the duration of those agreements. The Term Loan Facility is subject to an agreed OID and other fees that are customary for a facility of this nature. Closing of the transaction is subject to customary conditions precedent, with funding of the USD 50 million of term loan proceeds expected to occur during the month of June.