REYKJAVÍK - Amaroq Minerals Ltd. (AIM, TSXV, NASDAQ Iceland: AMRQ), a mining firm operating in Southern Greenland, has finalized a US$35 million revolving credit facility agreement with Landsbankinn hf., enhancing the company’s financial position. The deal, which restructures existing debt and provides additional working capital, was completed on Monday.
The credit arrangement consists of three facilities: Facility A at US$18.5 million, Facility B at US$10 million, and Facility C at US$6.5 million. Facility A will refinance Amaroq’s previous credit facilities, while B and C are earmarked for working capital and general corporate purposes. The facilities carry interest rates between 7.5% and 9.5%, with the higher rate dropping after Facility C becomes available, contingent on the company’s earnings before interest, taxes, depreciation, and amortization (EBITDA) exceeding CAD 6 million over a three-month period.
The new credit facilities come with an arrangement fee of 1.5%, a 0.4% commitment fee on undrawn amounts, and are set to terminate on 1 December 2026. Security for the loan includes mortgages on property and equipment, share pledges over subsidiaries, bank account pledges, and a license transfer agreement.
In tandem with the credit agreement, Amaroq has announced the delay in formalizing the Impact Benefit Agreement ( IBA (EBR:IBAB)) with the Government of Greenland and Kommune Kujalleq. Initially expected by 31 December 2024, the IBA’s deadline may be extended to 30 June 2025 due to the government’s need to prioritize other issues. Amaroq emphasized that this delay will not affect the ongoing and future operations at its Nalunaq project, which is on track to reach its planned production capacity of 260-300 tonnes per day by the fourth quarter of 2025.
The press release also notes that the unutilized US$10 million cost overrun facility with JLE Property Ltd., dated 1 September 2024, will be canceled as a result of the new financing.
This financial development is based on a press release statement and aims to provide Amaroq with the liquidity and flexibility necessary to continue its growth and development of the Nalunaq gold project, while maintaining a disciplined approach to capital management.
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