Hedging to get the $250 million loan to finish the mine? Sheep has the hedging changed? 150000 oz hedged untill 4Q/24 and another 150000 oz hedged untill 3Q/27 both at US$1860/oz.
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US$250 Million Credit Facilities
Argonaut is also pleased to announce, further to its news release dated June 23, 2022, that it has signed the binding commitment letter from a syndicate of lenders for the financing of a six year, US$200 million term loan credit facility and a three year revolving credit facility of US$50 million (the "Facilities"), for a total debt Facilities limit of US$250 million. The proceeds of the Facilities are to be used to refinance the Company's existing debt and for general corporate purposes, including ongoing development and expansion capital of the Magino project in Ontario, Canada and other producing assets.
Closing of the Facilities is subject to a number of conditions precedent as further described in the Company's June 23, 2022 news release.
The Company anticipates that the Facilities together with the net proceeds of the Offering, will fully finance the remaining portion of its Magino project. Endeavour Financial assisted the Company as its financial advisor in connection with the Facilities.
Hedging
Argonaut is also pleased to announce that, as one of the conditions precedent for closing of the Facilities, it has made the following arrangements to hedge its gold price exposure over the life of the loan on the following terms:
- Beginning in the third quarter 2023, Argonaut has hedged 25,000 gold ounces per quarter for the first six quarters and 15,000 gold ounces for the remaining 10 quarters at a gold price of US$1,860/oz. ...