Emerita receives TSX-V OK for increase to Nebari loan

Executive Summary

• Emerita Resources Corp. has received TSX Venture Exchange approval for an amended credit agreement with Nebari Natural Resources Credit Fund II LP, upsizing the available standby loan facility to $50 million (U.S.).
• The upsizing includes a new fourth tranche of $35 million (U.S.), bringing the total facility capacity to $50 million (U.S.).
• Nebari has waived its entitlement to receive common share purchase warrants in connection with this upsized loan.

Key Details

• Transaction Structure: Amended credit agreement with Nebari Natural Resources Credit Fund II LP.
• Loan Amount: Total facility upsized to $50 million (U.S.).
• New Tranche: A fourth tranche of $35 million (U.S.) is made available as a standby loan.
• Warrant Terms: Nebari has agreed to waive its entitlement to receive Emerita common share purchase warrants in connection with the upsized loan.
• Drawdown Conditions: Drawdowns under tranches 2, 3, and 4 are at the sole discretion of Emerita, subject to satisfying applicable conditions precedent in the loan agreement.
• Use of Proceeds: Working capital for exploration and geological drilling, advancement of engineering studies, environmental permitting at the Iberian Belt West (IBW) project, deposits on long-lead-time items, and general and administrative costs.
• Project Context: Funds support the wholly owned Iberian Belt West (IBW) project, specifically advancing permitting, prefeasibility studies, and ongoing drilling at the El Cura deposit.

Notable Quotes

• Steven Bowles, Nebari's Managing Director: "Nebari continues to believe in the potential of the IBW project and is pleased to provide additional financing capacity of now up to $50-million (U.S.) to the Emerita team. IBW is well positioned to advance toward the execution stage of the project with its growing resources, modest expected capital cost and established local infrastructure, all in a supportive mining jurisdiction."
• David Gower, CEO of Emerita: "We are excited to be advancing the IBW project through permitting and prefeasibility and driving diligently towards a production decision. Technical results at the project, including from ongoing drilling at El Cura deposit and metallurgical advancements, along with strong metal prices for all of the commodities (zinc, copper, lead, gold and silver) expected to be produced are further enhancing the project's potential. We are very grateful to have a partnership with Nebari in supporting the development plans for a modern and sustainably developed mine at IBW."