Torex Gold Resources unit gets liquidity threshold waiver extension

By Tali Rackner

Minneapolis, Jan. 31 – Torex Gold Resources Inc. wholly owned subsidiary Minera Media Luna, SA de CV received an extension to its waiver signed by BNP Paribas as administrative agent on behalf of lenders to lower the liquidity covenant threshold in its credit agreement to $30 million from $50 million until Feb. 28.

Previously, the waiver expiration date was Jan. 31, 2018, according to a press release.

The waiver requires that the remaining $25 million available under the credit agreement, not yet drawn, is counted toward meeting the liquidity covenant threshold, but it may not be drawn by Minera Media Luna.

“This extension to the previously agreed waiver on the part of the lenders provides an extra level of comfort to temporarily minimize any risk of covenant breach while we endeavor to re-start operations at the ELG Mine,” president and chief executive officer Fred Stanford said in the release.

Torex is a gold producer based in Toronto.

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