TORONTO, ON / ACCESSWIRE / September 20, 2023 / PPX Mining Corp. (TSX.V:PPX.V)(BVL:PPX) (together with its Peruvian subsidiaries - the "Company" or "PPX") is pleased to announces that yesterday, the Board of Directors of the Company passed a resolution authorizing management to subscribe to a binding term sheet for a US$ 6,000,000 debt facility received on September 15, 2023 from a shareholder and Control Person of the Company, as defined in the policies of the Exchange, to fund most of the capital cost of the CIL and flotation plant that the Company intends to build to process the oxides and sulfides currently mined from its high grade Callanquitas Mine, located in La Libertad, Peru.
The key terms of this financing are as follows:
- US$ 6,000,000 total debt facility to be disbursed in 4 tranches.
- 11.75% annual interest rate.
- 1.5 years grace period, paying only interest, to cover the construction and commissioning periods.
- 3 years principal amortization period, following the grace period.
- The facility will be administered through a trust structure that will guarantee the repayment of the loan obligations. In addition, other trusts will be established to ensure the construction funding flow and to protect the surface rights and shares of the Peruvian subsidiary holding the construction and processing permits.
- Total and partial prepayments are authorized with no penalties.
- Certain conditions precedent are applicable to this transaction, including TSXV approval.
- A 3% finder's fee payable in shares of PPX Mining Corp. is applicable to this transaction.
Brian Imrie, Executive Chairman commented "we are delighted to subscribe to this binding commitment with our major shareholder. This funding will allow us to start building the planned processing plant as soon as the amendment of our current construction permit is received, which in addition to the exceptional terms of the financing, it provides a strong vote of confidence in the Company's Igor Project".
About PPX Mining Corp:
PPX Mining Corp. (TSX.V:PPX.V)(BVL:PPX) is a Canadian-based mining company with assets in northern Peru. Igor, the Company's 100%-owned flagship gold and silver project, is located in the prolific Northern Peru gold belt in eastern La Libertad Department.
On behalf of the Board of Directors
Brian Imrie
Executive Chairman
82 Richmond Street East
Toronto, Ontario M5C 1P1
Canada
416-361-0737