Battle North gets $40 million term loan, pays off existing facility

By Cady Vishniac

Detroit, Dec. 22 – Battle North Gold Corp. has signed a binding commitment letter with Macquarie Bank Ltd. for a $40 million senior secured term loan due March 31, 2026, according to a press release.

Proceeds will be used to fund the construction of the Bateman Gold Facility.

According to the terms of the facility, the company will have to spend C$50 million on the project before drawing above the first $5 million.

Repayments will be made quarterly beginning on March 31, 2023. Voluntary prepayment can be made at any time.

Interest before the project’s completion will be Libor plus 525 basis points, with a step down to Libor plus 425 bps after the project is completed. The arranging fee is 2%, and the commitment fee on undrawn funds is 1.5%.

Fees also include 2.5 million warrants for common shares with an exercise price at a 30% premium to the five-day VWAP as of Dec. 21 and a term of two years.

The company will also be paying off its remaining C$15 million of debt under its Sprott Loan facility on Dec. 24.

Battle North is a Canadian gold mine developer based in Vancouver, B.C.

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