DynaResource, Inc. (OTCQX:DYNR) has reported the Company has entered into an updated agreement with Ocean Partners UK Limited for a credit line facility expansion and offtake extension.
The Concentrate Credit Line replaces the previous agreement with Ocean Partners announced in June 2024 (see June 7, 2024 press release) increasing the amount from $12.5 million to $15.0 million, and offers a 6-month grace period on principal repayments. The key terms of the Credit Facility are set out below.
In addition, the Company and Ocean Partners have entered into an amended agreement for the purchase of 100% of the Gold Concentrate floatation and gravity production from the San Jose de Gracia Mine. The contract has been extended to December 31, 2030 with improved gold payability terms.
Credit Facility Key Terms:
- Size: Up to $15 million in funding.
- Structure: Term credit facility.
- Repayment Terms: 6-month grace period, then 18 equal month installments (months 7-24).
- Competitive Interest Rate: 3M SOFR + 6.75%, payable monthly.
- Use of Proceeds: Repayment of existing advances, expansion capital, working capital and general corporate purposes.
- Security: Parent company guarantee, general security agreement and a pledge of shares of Mexican subsidiary, DynaResource de Mexico SA de CV.
- Offtake Commitment: Extended Offtake Agreement required for Credit Facility closing.
“We are pleased to announce this financial derisking milestone for the Company as it helps to improve working capital, and to continue to invest in critical mine development , positioning San Jose de Gracia for operational improvements and long-term growth,” stated Rohan Hazelton, President & CEO of DynaResource.
“We would also like to acknowledge our relationship with Ocean Partners, which has been our offtake partner and key stakeholder throughout the past 5 years, supporting the optimization and turnaround of the San Jose de Gracia Mine. These new agreements further reinforce our strong working relationship, demonstrating competitive terms, and providing security and confidence in our business plans to optimize operations and increase shareholder value.”
