Discovery Silver secures $250 million revolving credit facility

TORONTO - Discovery Silver Corp. (TSX:DSV, OTCQX: DSVSF), a mining company with a market capitalization of $2.87 billion and an impressive YTD return of nearly 599%, announced Monday it has entered into an agreement with a syndicate of financial institutions for a US$250 million revolving credit facility, with an option to increase by an additional US$100 million. According to InvestingPro, the company maintains a "GREAT" financial health score of 3.19.

The syndicate includes Bank of Montreal as administrative agent and lender, BMO Capital Markets as sole bookrunner and co-lead arranger, along with Canadian Imperial Bank of Commerce and National Bank of Canada as co-lead arrangers.

The three-year facility will mature on September 15, 2028, and can be used for general corporate purposes, working capital, and financing future investments. The credit facility is secured by all assets of the company and its material subsidiaries.

Interest rates on the facility will vary based on the company’s consolidated net leverage ratio, with Term SOFR loans carrying a margin of 2.50% to 3.50% and US dollar base rate loans carrying a margin of 1.50% to 2.50%.

Following this agreement, Discovery will terminate its existing undrawn US$100 million senior debt facility with Franco-Nevada GLW Holdings Corp., which was entered into on April 15, 2025.

Discovery Silver owns the Cordero silver project in Chihuahua State, Mexico, and recently acquired the Porcupine Complex near Timmins, Ontario, on April 15, 2025, which transformed the company into a Canadian gold producer. Get detailed analysis and 8 additional key insights about Discovery Silver with a subscription to InvestingPro, including exclusive Fair Value calculations and comprehensive financial metrics.

The information in this article is based on a company press release statement.

In other recent news, DSV Panalpina A/S reported its second-quarter 2025 earnings, highlighting strong growth following the integration of Schenker. The company achieved an earnings per share of 13.63, which aligned with market expectations. Despite this robust financial performance, the stock experienced a slight decline of 1.43% in early trading, indicating mixed investor sentiment. In addition to the earnings report, Goldman Sachs maintained its Buy rating on DSV A/S, setting a price target of DKK2,000.00, which suggests approximately 50% upside potential. Goldman Sachs attributes the summer selloff in DSV’s stock to a timing mismatch between cyclical and idiosyncratic earnings drivers, as well as investor reactions to the earnings call. These developments reflect DSV’s strategic progress and the market’s varied response to its recent activities.

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