Candelaria Mining Closes US $ 9 Million Medium Term Loan
VANCOUVER, British Columbia, June 25, 2020 (GLOBE NEWSWIRE) – Candelaria Mining Corp. (TSXV: CAND, OTC PINK: CDELF) (the “Society“) is pleased to announce that it has entered into a US $ 9 million medium term loan facility (“Establishment“) with Accendo Banco, SA (“Accendo“). Funds advanced under the facility will be used to finance construction of the Company’s Pinos project and for working capital purposes.
The loan facility will be secured by the assets of the Company and its subsidiaries, will bear interest at the rate of 13% per annum and will have a term of 60 months from the date of the initial drawdown. Candelaria will be able to withdraw US $ 1.5 million during the implementation of the Facility, with the balance to be made available once the final loan documentation is completed.
Under the loan facility, Accendo will receive from the Company a cash commission of 2% of the amount of the loan facility, as well as 18 million non-transferable share purchase warrants (the “”Bonus coupons“). Each warrant will give Accendo the right to purchase one common share of the Company at a price (the “”Exercise price”) Of CA $ 0.11 per share for a period of 60 months.
Curtis Turner, CEO, commented: “Candelaria is happy to have entered into an agreement with a lender like Accendo Banco for a project loan facility. This announcement represents a major catalyst in the substantial economic development of the Municipality of Pinos, Zacatecas in Mexico. The Facility also offers the main features sought by Candelaria in its solicitation process: a simple debt instrument with limited financial covenants, including a flexible structure allowing early withdrawal and early repayment of principal. Acendo’s in-depth knowledge of the Pinos project should translate into an accelerated timeline to close.
Accendo is a full service bank registered under the laws of Mexico.
The closing of the loan facility transaction is subject to the approval of the exchange and the completion of the final documentation.
About Candelaria Mining
Candelaria Mining is a Canadian gold exploration and development company with a portfolio of very promising projects in Mexico, one of the best mining jurisdictions in the world. The Caballo Blanco project, 100% owned by Candelaria, contains an indicated resource of 521,000 ounces of gold and 2,170,000 ounces of silver (31,220,000 tonnes grading 0.52 g / t gold and 2.16 g / t silver) and an inferred resource of 95,000 ounces of gold and 590,000 ounces of silver (8,630,000 tonnes grading 0.34 g / t gold and 2.14 g / t silver). There is the potential to increase these estimated resources through continued drilling and exploration. Candelaria also owns the Pinos gold project which contains a measured resource of 4,444 ounces of gold and 228,892 ounces of silver (85,847 tonnes grading 1.6 g / t gold and 82.9 g / t silver ), an indicated resource of 20,586 ounces of gold and 267,745 ounces of silver (175,697 tonnes grading 3.6 g / t gold and 47.4 g / t silver) and an inferred resource of 60,657 ounces of gold and 811,082 ounces of silver (529,267 tonnes grading 3.6 g / t gold and 47.4 g / t silver). For more information on resource estimates, please see the technical reports prepared in accordance with NI 43-101 which are available on the Company’s website at www.candelariamining.com.
ON BEHALF OF THE BOARD,
Chief Executive Officer
For more information, please contact:
E-mail: [email protected]
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.