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Mako Mining Announces Financing from Nebari to Accelerate Both the Ramp Up of Mining Operations at San Albino and the 2021 Exploration Program

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Mako Mining Announces Financing from Nebari to Accelerate Both the Ramp Up of Mining Operations at San Albino and the 2021 Exploration Program






Mako Mining Corp. (TSX-V: MKO) (OTCQX: MAKOF) is pleased to announce that it is in final negotiations with Nebari Natural Resources Credit Fund I, LP to provide financing of US$6.34 million, including a US$500,000 bridge loan that has now been funded.


The Company proposes to use the funds from the Financing to accelerate the ramp up of mining operations at the San Albino gold project in northern Nicaragua, the acceleration of the previously announced US$8.4 million 2021 exploration program (see press release dated February 1, 2021), and for fees and expenses incurred in connection with the Financing.


Akiba Leisman, Chief Executive Officer of Mako states that, “we are excited to be working with Nebari on the Financing, which allows the Company to accelerate both the ramp up of mining operations at San Albino and the 2021 exploration program.  The Financing does not include any equity or warrants, nor does it require any hedging or other commodity-linked derivatives.  With regards to the exploration program, this will allow us to immediately ramp up our drilling campaign, which will focus not only on San Albino and Las Conchitas, but on regional targets that have never been drilled before.   At San Albino, we have started producing gold through the gravity circuit and smelting at our laboratory.  We are awaiting the commissioning of our induction furnace and the completion of our tailings conveyance system, which will allow for the processing of the more than 5,000 ounces of gold sitting in stockpiles through the full CIL.  This is expected to be completed over the next two weeks, at which point gold shipments can begin.  Commercial production is still targeted for early Q2 2021.”


The interest rate on the Principal Amount will be 8% with an original issue discount of 5.3% and a maturity date of March 31, 2022.  There will be no pre-payment penalties and no hedging.  Closing of the Financing is expected on or before February 28, 2021.


The bridge loan is non-interest bearing, provided that it is repaid on the earlier of February 28, 2021 or on the closing of the Financing. The Company intends to repay the bridge loan in full with the proceeds of the Financing.  The interest rate increases to 14% if the Financing is delayed by mutual consent, or to 20% on any unpaid amount owing in an event of default. The Company has paid Nebari a fee of US$10,000 to provide the bridge loan.


The Financing is secured by a pledge of shares in favour of Nebari of the Company’s Nicaraguan subsidiaries, Gold Belt, S.A. and Nicoz Resources, S.A.  It is contemplated that the share pledge will be held for the benefit of both Nebari and Mako’s existing lender and controlling shareholder, Wexford Capital LP once the Financing is fully closed.


About Nebari


Nebari is a New York based manager of privately offered pooled investment vehicles including Nebari Natural Resources Credit Fund I, LP which is funding the loan to Mako. The leadership team has deep experience with leading global mining companies and financial institutions. Nebari is known for partnering with motivated and capable management teams focused on achieving clear plan targets.


About Mako


Mako Mining Corp. is a publicly listed gold mining, development and exploration firm. The Company is developing its high-grade San Albino gold project in Nueva Segovia, Nicaragua. Mako’s primary objective is to bring San Albino into production quickly and efficiently, while continuing exploration of prospective targets in Nicaragua.


Posted February 16, 2021

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