Yes they need the cash - but they put lipstick on the pig by explaining its for restart of Cosala, and getting RC going... Wonder how many pesos of this $ the Mexican gov't/union bosses are getting/.
AMERICAS GOLD AND SILVER CORPORATION ANNOUNCES ISSUANCE OF C$12.5 MILLION SECURED CONVERTIBLE DEBENTURE
Americas Gold and Silver Corp. has issued a $12.5-million senior secured convertible debenture. The convertible debenture bears interest at a rate of 8 per cent per annum, has a maturity date of April 28, 2024, and is repayable by the company at its option, prior to maturity, subject to the payment of a redemption premium. The debenture is secured by the company's interest in the Galena complex and will be secured by the shares of one of the company's Mexican subsidiaries. The principal amount outstanding under the convertible debenture is convertible at any time at the holder's option, into common shares of Americas Gold and Silver at a conversion price of $3.35 per share. The proceeds were raised in anticipation of the reopening of its Cosala operations in Mexico, repayment of shorter-term debt obligations, the ramp-up at Relief Canyon and for working capital purposes. The listing of the shares issuable upon conversion remains subject to the approval of the Toronto Stock Exchage.
The company will be providing a comprehensive corporate update with its Q1 2021 results by May 15, 2021, including details of the potential restart of its Cosala operations, an operational update, and additional significant drill results from its Galena complex and the ramp-up at Relief Canyon.