VANCOUVER, BC, Feb. 16, 2021 /CNW/ - Mako Mining
Corp. (TSXV: MKO) (OTCQX: MAKOF) ("Mako" or the "Company") is
pleased to announce that it is in final negotiations with Nebari
Natural Resources Credit Fund I, LP ("Nebari") to provide financing
of US$6.34 million (the "Principal
Amount"), including a US$500,000
bridge loan that has now been funded (collectively, the
"Financing").
The Company proposes to use the funds from the Financing to
accelerate the ramp up of mining operations at the San Albino gold
project ("San Albino") in northern Nicaragua, the acceleration of the previously
announced US$8.4 million 2021
exploration program (see press release dated February 1, 2021), and for fees and expenses
incurred in connection with the Financing.
Akiba Leisman, Chief Executive
Officer of Mako states that, "we are excited to be working with
Nebari on the Financing, which allows the Company to accelerate
both the ramp up of mining operations at San Albino and the 2021
exploration program. The Financing does not include any
equity or warrants, nor does it require any hedging or other
commodity-linked derivatives. With regards to the exploration
program, this will allow us to immediately ramp up our drilling
campaign, which will focus not only on San Albino and Las
Conchitas, but on regional targets that have never been drilled
before. At San Albino, we have started producing gold
through the gravity circuit and smelting at our laboratory.
We are awaiting the commissioning of our induction furnace and the
completion of our tailings conveyance system, which will allow for
the processing of the more than 5,000 ounces of gold sitting in
stockpiles through the full CIL. This is expected to be
completed over the next two weeks, at which point gold shipments
can begin. Commercial production is still targeted for early
Q2 2021."
The interest rate on the Principal Amount will be 8% with an
original issue discount of 5.3% and a maturity date of March 31, 2022. There will be no
pre-payment penalties and no hedging. Closing of the
Financing is expected on or before February
28, 2021.
The bridge loan is non-interest bearing, provided that it is
repaid on the earlier of February 28,
2021 or on the closing of the Financing. The Company intends
to repay the bridge loan in full with the proceeds of the
Financing. The interest rate increases to 14% if the
Financing is delayed by mutual consent, or to 20% on any unpaid
amount owing in an event of default. The Company has paid Nebari a
fee of US$10,000 to provide the
bridge loan.
The Financing is secured by a pledge of shares in favour of
Nebari of the Company's Nicaraguan subsidiaries, Gold Belt, S.A.
and Nicoz Resources, S.A. It is contemplated that the share
pledge will be held for the benefit of both Nebari and Mako's
existing lender and controlling shareholder, Wexford Capital LP
once the Financing is fully closed.
On behalf of the Board,
Akiba
Leisman
Chief Executive Officer
About Nebari
Nebari is a New York based
manager of privately offered pooled investment vehicles including
Nebari Natural Resources Credit Fund I, LP which is funding the
loan to Mako. The leadership team has deep experience with leading
global mining companies and financial institutions. Nebari is known
for partnering with motivated and capable management teams focused
on achieving clear plan targets.
About Mako
Mako Mining Corp. is a publicly listed gold mining, development
and exploration firm. The Company is developing its high-grade San
Albino gold project in Nueva
Segovia, Nicaragua. Mako's
primary objective is to bring San Albino into production quickly
and efficiently, while continuing exploration of prospective
targets in Nicaragua.
Forward-Looking Information: Certain
statements contained herein may be considered "forward-looking
information" within the meaning of applicable securities laws.
Forward-looking information can be identified by words such as,
without limitation, "propose", "estimate", "project", "believe",
"anticipate", "intend", "expect", "plan", "predict", "may" or
"should" or variations thereon or comparable terminology. The
forward-looking information contained herein reflects the Company's
current beliefs and expectations, based on management's reasonable
assumptions as of the date hereof, and includes, without
limitation, the Company's expectation that it will
successfully complete final negotiations and close on the Principal
Amount with Nebari by February 28,
2021, and that the bridge loan will be repaid in full
using the proceeds of the Financing without any interest
penalty; that it will use the funds from the Financing to
accelerate the ramp up of mining operations at San Albino, to
accelerate the 2021 exploration program and to pay fees and
expenses incurred in connection with the Financing; that the
commissioning of the induction furnace and the completion of the
tailings conveyance system will allow for the processing of the
more than 5,000 ounces of gold sitting in stockpiles through the
full CIL, and that this work will be completed in the next two
weeks allowing gold shipments to begin; that commercial production
will occur in early Q2 2021; and that the Company
will be able to bring San Albino into production quickly and
efficiently while continuing exploration of prospective targets in
Nicaragua. Such
forward-looking information is subject to a variety of risks and
uncertainties which could cause actual events or results to differ
materially from those reflected in the forward-looking information,
including, without limitation, the Company not being successful in
finalizing its negotiations and closing on the Principal Amount by
February 28, 2021, or at all, and
that, as a result, the Company potentially becomes subject to the
payment of interest penalty and required to repay the bridge loan
without the expected additional funding from Nebari; that the
Company is not able to ramp up mining operations at San Albino and
accelerate its 2021 exploration program as a result of lack of
funding or other factors; that the Company is unable to complete
the commission of the induction furnace and tailings conveyance
system to allow for processing of stockpiled material, shipments
and commercial production on the timeline currently contemplated;
and changes in plans and parameters related to San Albino and
the Company's exploration prospectus in Nicaragua and other risks and uncertainties as
disclosed in the Company's public disclosure filings on SEDAR at
www.sedar.com. Such information contained herein represents
management's best judgment as of the date hereof, based on
information currently available and is included for the purposes of
providing investors with information regarding the Company's
current funding arrangements with Nebari, and may not be
appropriate for other purposes. Mako does not undertake to update
any forward-looking information, except in accordance with
applicable securities laws.
Neither the TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
SOURCE Mako Mining Corp.
