Americas Gold and Silver Closes USD 100 Million Debt Financing With SAF Group and Provides Galena Update

Published: 2025-06-25 08:05:50 ET USA.TO

Published on 06/25/2025 at 08:05

Americas Gold and Silver Corporation announced that it has closed its previously announced USD 100 million senior secured debt facility ("Term Loan Facility?) provided by funds affiliated with SAF Group (?SAF?), primarily to fund growth and development capital spending at the Galena Complex. The USD 100 million Term Loan Facility consists of three tranches as follows: a USD 50 million term loan which was advanced to Americas upon closing, and two additional tranches of USD 25 million each which are available to the Company after satisfying certain conditions precedent. The Term Loan Facility consists of: A term loan with proceeds of USD 50 million advanced at closing.

The initial tranche advanced on the closing date is subject to an interest rate of SOFR (4% floor) plus 6% per annum and matures 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 the Company upon the achievement of certain conditions precedent.

The first additional tranche will be subject to an interest rate of SOFR (4% floor) plus 6% per annum after funding. The second additional tranche will be subject to an interest rate of SOFR (4% floor) plus 4% per annum 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.

SAF holds 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 SAF by Trafigura and Sandstorm, respectively for the duration of those financing arrangements. The Term Loan Facility is subject to an agreed OID and other fees that are customary for a facility of this size.