Wesdome amends and upsizes credit facility
Toronto-based miner Wesdome Gold Mines has amended and upsized its credit facility, led by National Bank Financial, to C$80-million, immediately, and to more than C$150-million upon declaration of commercial production at the Kiena mine, in Quebec.
The facility also features more favourable covenants, lowers the margin of borrowing, and extends the term to August 25, 2025 from March 29, 2024.
“With this facility and ongoing free cash flow generation from our Eagle River mine [in Ontario], Wesdome maintains significant financial liquidity and flexibility as we look towards ramping up Kiena in the near term,” CEO Duncan Middlemiss said on Wednesday.
Wesdome reported last month that global supply chain challenges had delayed the delivery of the underground equipment and key electrical components for Kiena. Consequently, the mining rate had been slower to ramp up, which put Kiena about three to four months behind the original 2022 plan.
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