AURCANA SILVER CORPORATION (TSX-V: AUN) is pleased to announce that it has closed the previously announced US$28 million dollar project financing facility to fund the restart of Aurcana’s wholly owned Revenue-Virginius mine located in Ouray, Colorado. The lender under the facility is an indirect, wholly owned subsidiary of Mercuria Energy Group Limited. The financing is in the form of a secured term loan. Mercuria also provided the Revenue Mine with a hedging program against approximately 29% of its anticipated silver production profile over the ensuing five years.
Material terms of the Term Loan include:
ROC Global acted as the exclusive financial advisor to Aurcana on this debt financing.
Aurcana also is pleased to announce that its wholly owned indirect subsidiary Ouray Silver Mines, Inc., the direct owner of the Revenue Mine, has executed a 5 year benchmark based offtake agreement with Trafigura Trading LLC for 100% of the lead and zinc concentrate production from the Revenue Mine. The term of the Offtake Agreement matches that of the Term Loan, and it is structured to allow for annual renewal thereafter by mutual consent.
Kevin Drover, CEO of Aurcana commented “This financing is a transformational step for Aurcana, allowing us to proceed with the long anticipated restart of full operations at the Revenue Mine. The Board has formally approved the restart decision. We appreciate the efforts of everyone including Mercuria to get this financing closed and look forward to our ongoing partnership with them. We are also excited to have selected the prominent trading firm Trafigura as our offtake partner. These events are the realization of our vision when we completed the reverse-takeover of OSMI in 2018, and this is an exciting day for Aurcana and our team at the Revenue Mine.”
The Company has continued to progress the pre-development activities at the Revenue Mine in anticipation of the Closing and believes it is well positioned to be in production in the 3rd quarter of calendar 2021, consistent with the Company’s forecast pursuant to the 2018 feasibility study prepared in accordance with National Instrument NI 43-101 – Standards of Disclosure for Mineral Projects. A copy of the 2018 FS is posted on the Company’s website www.aurcana.com and is also available on the Company’s profile on SEDAR at www.sedar.com.
Qualified Person Statement
The scientific and technical content of this news release was reviewed and approved by Michael Gross, P. Geo, a “qualified person” within the meaning of NI 43-101.
ABOUT AURCANA SILVER CORPORATION
Aurcana Silver Corporation owns the Revenue Mine, in Colorado, and the Shafter-Presidio Silver Project in Texas, US. The primary mineral resource at both the Shafter-Presidio Project and the Revenue Mine is silver. Both are fully permitted for production.
ABOUT MERCURIA ENERGY GROUP LIMITED
Founded in 2004, Mercuria is one of the largest independent energy and commodity groups in the world, bringing efficiency to the commodity value chain with cutting-edge technology and unmatched expertise and solutions. Mercuria’s business includes trading flows, strategic assets and structuring activities that generate more than USD 120 billion in turnover. It operates from offices around the world, with a strong presence in the Americas, Asia and Europe.
Goliath Resources Limited (TSX-V: GOT) (OTCQB: GOTRF) (Frankfurt:... READ MORE
Vendetta Mining Corp. (TSX-V: VTT) is pleased to announce the dri... READ MORE
Results Deepen Previous Hi-Grade Drill Intercepts Guanajua... READ MORE
North Arrow Minerals Inc. (TSX-V-NAR) is pleased to announce it h... READ MORE
Cuyes West Drilling Highlights: CU23-25 – 203.0 metres grading ... READ MORE