McEwen Mining Closes the Refinancing of Its $50 Million Debt
26 June 2020 - 7:01AM
McEwen Mining Inc. (NYSE: MUX) (TSX: MUX)
(“McEwen” or the “Company”) is pleased to announce that it has
successfully refinanced its $50 million senior secured term loan
facility (the “Term Loan”). As part of the refinancing, Sprott
Private Resource Lending II (Collector), LP has replaced Royal
Capital Management Corp. as a lender and the administrative agent
for the Term Loan; and Evanachan Limited, a corporation
wholly-owned by Rob McEwen, remains a lender (collectively the
“Lenders”). The principal amount of the loan remains $50 million.
As part of the amendments, the maturity date of
the Term Loan has been extended by two years to August 31, 2023. In
consideration for the extension of the Term Loan and other
amendments, the Lenders were paid one-time bonus interest of 3.75%
of the principal amount of the Term Loan in the form of restricted
shares of the Company. A total of 2,091,700 common shares were
issued to the Lenders pro rata in connection with the
refinancing.
The principal amount of the Term Loan will
continue to bear interest at 9.75%, payable monthly. Principal
payments of $2 million per month are now scheduled to begin two
years later on August 31, 2022, and the final principal payment is
due on August 31, 2023. The Term Loan can be retired in full or in
part any time prior to December 31, 2021 upon payment of the
principal and accrued interest plus a fee linked to the remaining
life of the Term Loan, and after December 31, 2021 upon the payment
of the remaining principal and accrued interest plus a fee equal to
3% of the remaining principal.
CAUTION CONCERNING FORWARD-LOOKING
STATEMENTSThis news release contains certain
forward-looking statements and information, including
"forward-looking statements" within the meaning of the Private
Securities Litigation Reform Act of 1995. The forward-looking
statements and information expressed, as at the date of this news
release, McEwen Mining Inc.'s (the "Company") estimates, forecasts,
projections, expectations or beliefs as to future events and
results. Forward-looking statements and information are necessarily
based upon a number of estimates and assumptions that, while
considered reasonable by management, are inherently subject to
significant business, economic and competitive uncertainties, risks
and contingencies, and there can be no assurance that such
statements and information will prove to be accurate. Therefore,
actual results and future events could differ materially from those
anticipated in such statements and information. Risks and
uncertainties that could cause results or future events to differ
materially from current expectations expressed or implied by the
forward-looking statements and information include, but are not
limited to, effects of the COVID-19 pandemic, fluctuations in the
market price of precious metals, mining industry risks, political,
economic, social and security risks associated with foreign
operations, the ability of the corporation to receive or receive in
a timely manner permits or other approvals required in connection
with operations, risks associated with the construction of mining
operations and commencement of production and the projected costs
thereof, risks related to litigation, the state of the capital
markets, environmental risks and hazards, uncertainty as to
calculation of mineral resources and reserves, and other risks.
Readers should not place undue reliance on forward-looking
statements or information included herein, which speak only as of
the date hereof. The Company undertakes no obligation to reissue or
update forward-looking statements or information as a result of new
information or events after the date hereof except as may be
required by law. See McEwen Mining's Annual Report on Form 10-K for
the fiscal year ended December 31, 2019 and other filings with the
Securities and Exchange Commission, under the caption "Risk
Factors", for additional information on risks, uncertainties and
other factors relating to the forward-looking statements and
information regarding the Company. All forward-looking statements
and information made in this news release are qualified by this
cautionary statement.
The NYSE and TSX have not reviewed and do not accept
responsibility for the adequacy or accuracy of the contents of this
news release, which has been prepared by management of McEwen
Mining Inc.
ABOUT MCEWEN MINING
McEwen Mining is a diversified gold and silver
producer and explorer with operating mines in Nevada, Canada,
Mexico and Argentina. It also owns a large copper deposit in
Argentina. McEwen Mining’s goal is to create a profitable gold and
silver producer focused in the Americas.
McEwen Mining has approximately 400 million shares outstanding.
Rob McEwen, Chairman and Chief Owner, owns 21% of the shares.
CONTACT
INFORMATION: |
Investor
Relations:(866)-441-0690 Toll Free(647)-258-0395
Mihaela Iancu ext. 320
info@mcewenmining.com |
Website:
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150 King Street WestSuite 2800, P.O. Box 24Toronto, ON, CanadaM5H
1J9 |
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