This credit agreement provides for two $10m tranches and a $5m revolving working capital facility.
As part of the transaction, Santa Fe has agreed to sell to Waterton the gold and silver produced from the Summit mine and (upon closing of the Columbus Silver Corp acquisition) the Mogollon project via a long-term supply deal.
Five million dollars of the first $10m tranche of the Waterton facility was used to retire the company’s 15% senior secured bridge loan with Victory Park Capital Advisors.
The second $10m tranche, which is subject to several funding conditions, is earmarked to fund the acquisition of Columbus Silver Corp, the company said.
Santa Fe Gold is a mining and exploration enterprise focused on acquiring and developing gold, silver, copper and industrial mineral assets.
