Minera Alamos Secures Financial Flexibility with Auramet Loan Extension
Wednesday, Jan 15, 2025 6:32 pm ET
4min read Minera Alamos Inc. (TSXV:MAI) has recently announced an extension to its loan facility with Auramet International LLC (Auramet), providing the company with additional financial flexibility and operational flexibility during a period of significant growth. The extension, subject to TSXV approval, allows Minera Alamos to maintain its development activities and exploration efforts while managing its cash flow more effectively.
The extended loan facility, with a maturity date now set for November 29, 2024, offers Minera Alamos an additional month to manage its cash flow and potentially secure additional financing or improve its financial position. Furthermore, if the company decides to extend the term of the remaining loan facility by six months, it may make a standby payment of USD$400,000 with the issuance of its common shares, preserving cash in the short term.
This extension is a strategic move for Minera Alamos, aligning with its overall growth plans and providing operational flexibility during a period of significant development activities. The company is currently expanding its leach pad at the Santana gold project, which will increase the area available for site leaching operations by 40%. This expansion will allow for more efficient leaching activities as the ramp-up of mining operations continues into 2025.
In addition to the Santana project, Minera Alamos is advancing the permitting process for its Cerro de Oro gold project and has recently entered into a definitive agreement to acquire Sabre Gold Mines Corp. (TSX:SGLD) for CAD 22 million. The acquisition of Sabre Gold Mines adds a complementary low capital intensity gold development project that could be brought back into production around the beginning of 2026, running in parallel with the plans for Santana and Cerro de Oro in Mexico.
The extended loan facility with Auramet provides Minera Alamos with additional financial flexibility and liquidity in both the short and long term. This strategic move allows the company to continue its operations, development activities, and exploration for new financing opportunities, ultimately supporting its growth plans and enhancing its overall financial position.
In conclusion, Minera Alamos' loan extension with Auramet is a strategic move that provides the company with additional financial flexibility and operational flexibility during a period of significant growth. This extension aligns with the company's overall growth plans and supports its development activities, ultimately enhancing its financial position and empowering it to continue pursuing its development goals.
Disclaimer: The news articles available on this platform are generated in whole or in part by artificial intelligence and may not have been reviewed or fact checked by human editors. While we make reasonable efforts to ensure the quality and accuracy of the content, we make no representations or warranties, express or implied, as to the truthfulness, reliability, completeness, or timeliness of any information provided. It is your sole responsibility to independently verify any facts, statements, or claims prior to acting upon them. Ainvest Fintech Inc expressly disclaims all liability for any loss, damage, or harm arising from the use of or reliance on AI-generated content, including but not limited to direct, indirect, incidental, or consequential damages.
