Dundee Precious Metals arranges $150 million two-tranche revolver

By Toni Weeks

San Luis Obispo, Calif., Feb. 15 - Dundee Precious Metals Inc. announced it has arranged a $150 million revolving credit facility, according to a press release.

The facility is comprised of a $125 million tranche maturing February 2016 and a $25 million tranche maturing February 2018.

Interest on the facility is Libor plus 275 basis points to 425 bps, depending on the company's financial indebtedness and adjusted earnings.

Lead banks on the deal include BNP Paribas, Canadian Imperial Bank of Commerce, European Bank for Reconstruction and Development, Raiffeisen Bank International AG, Royal Bank of Canada and Unicredit Bank AG.

The facility is supported by guarantees from and pledges of the shares of Dundee's operating subsidiaries, the release noted.

"With this financing, our cash on hand and the strong cash flow we are generating, we are well positioned to fund our strategic initiatives, including the upgrades being made at NCS, the gold pyrite circuit at Chelopech, the drilling at Deno to support a potential mine expansion and the development of the Krumovgrad gold project," president and chief executive officer Jonathan Goodman said in the release.

The company also announced that it has refinanced its $81.25 million of Chelopech loans with European Bank for Reconstruction and Development, Unicredit and Raiffeisen.

The new loans are substantially the same except that Dundee has become the borrower, the lenders now share in the same security granted under the new revolver and the previously existing cash sweep has been eliminated.

Toronto-based Dundee Precious Metals is a mining company engaged in the acquisition, exploration, development, mining and processing of precious metals, including gold, copper, zinc and silver.

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