Torex Gold repays $40 million of debt facility, gets new revolver

By Taylor Fox

New York, March 31 – Torex Gold Resources Inc. repaid the remaining $40 million debt under its 2019 debt facility and is now debt free other than $5 million of finance leases, according to a news release.

Torex’s wholly owned subsidiary Minera Media Luna, SA de CV also signed a third amended and restated credit agreement with a syndicate of lenders comprised of the Bank of Montreal, BNP Paribas, ING Bank, the Bank of Nova Scotia and Societe Generale in connection with a two-year senior secured $150 million revolving debt facility.

The amended and restated revolver may be used for general corporate purposes and working capital purposes and will mature on March 2023 with a step down in capacity by $25 million on Sept. 30, 2022 and again on Dec. 21, 2022.

The amended revolver also allows Torex to make distributions to its shareholders in the amount of up to C$100 million.

The revolver requires compliance with financial covenants related to maintaining a net leverage ratio of 3x, an interest coverage ratio of 3x and minimum liquidity of $50 million and some thresholds with respect to the development expenditures and the amount spent on the Muckahi mining system.

Torex Gold is a Toronto-based gold producer operating in the Morelos gold property in Mexico.

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