Candelaria Mining Corp (CVE:CAND) (OTCPINK:CDELF) announced it had entered into a US$9 million load facility to finance construction of the exploration company’s Pinos gold project in Mexico.
Pinos is an underground gold development project in Zacatecas – the second biggest gold producing state in Mexico after Sonora.
Under the agreement terms, Mexico’s Accendo Banco SA will provide the Vancouver-based company with the loan facility, which will be secured against Candelaria’s assets. In addition to Pinos, the company owns the Caballo Blanco project.
The loan bears an annual interest rate of 13% and has a 60-month term from the initial draw date. Candelaria may draw US$500,000 upon the loan’s execution, with the balance to be made on completion of the final loan documentation.
Accendo will receive a cash fee of 2% of the total facility as well as 18 million Candelaria warrants exercisable at C$0.11 per share for a 60-month period.
Candelaria said Accendo’s chairman Javier Reyes resigned as a director of the mineral explorer in order to comply with bank internal requirements.
Pinos hosts a measured resource of 4,444 ounces of gold and 228,892 ounces of silver and an indicated resource of 20,586 ounces of gold and 267,745 of ounces of silver.
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Published at Mon, 15 Jun 2020 19:21:00 +0000-Candelaria Mining secures US$9 million loan to finance Pinos gold project construction