 | Get all the essential market news and expert opinions in one place with our daily newsletter. Receive a comprehensive recap of the day's top stories directly to your inbox. Sign up here! |
(Kitco News) - McEwen Mining (NYSE: MUX) (TSX: MUX) yesterday reported that it has repaid $25 million of its senior secured debt payable to Sprott Resource Lending and Sprott is no longer a lender.
The company said that prior to the repayment, it had $50 million in senior secured debt and a $15 million unsecured promissory note, for a total debt of $65 million, adding that concurrent with the repayment to Sprott, the senior secured debt was amended and restated in the amount of $40 million bearing monthly interest at 9.75% per annum, and the promissory note was extinguished.
Importantly, according to a press release, the company's sole lender is now an entity owned by its Chairman and Chief Owner Rob McEwen.
"As a result of the debt reduction, McEwen Mining's annual borrowing costs will decrease by approximately $2.2 million or 36%," the company said.
McEwen Mining noted that the reduction of debt was funded through the secondary sale of McEwen Copper shares to FCA Argentina S.A. (Stellantis) and Nuton LLC, which closed in February and March 2023, and raised $47.5 million in gross proceeds to McEwen Mining.
McEwen Mining is a gold and silver producer with operations in Nevada, Canada, Mexico and Argentina. In addition, it owns approximately 52% of McEwen Copper which owns the large, advanced stage Los Azules copper project in Argentina.
The company indicated that its goal is to improve the productivity and life of its assets with the objective of increasing its share price and providing a yield.
|
| KAZ Minerals increases copper production by 6% to 95kt in Q1; sales up as rail logistics improved |
