Minera Alamos arranges $75-million (U.S.) credit line

Executive Summary

• Minera Alamos Inc. executed a term sheet for a $75 million (U.S.) revolving credit facility with Bank of Nova Scotia and National Bank of Canada, subject to definitive agreements and closing conditions.
• The company intends to use an initial drawdown from the new revolver to repay and terminate its existing gold prepayment facility with Auramet International Inc., thereby removing the obligation to deliver gold ounces and allowing investors to benefit more directly from current gold prices.
• The company provided updates on its U.S. growth pipeline, including the final stages of a prefeasibility study for the Copperstone project and ongoing optimization studies for the Pan and Gold Rock projects, with an updated technical report expected in Q4 2026.

Key Details

• Financing Structure:

  • Facility Size: $75 million (U.S.) revolving credit facility.
  • Lenders: Bank of Nova Scotia (Scotiabank) and National Bank of Canada.
  • Role: Scotiabank is the administrative agent; both banks act as co-lead arrangers and joint bookrunners.
  • Term: Three years from the closing date.
  • Interest Rate: Term SOFR plus a margin spread between 3.25% and 4.25%, based on the company's total net debt/EBITDA ratio.
  • Security: Senior security over the company's material assets.
  • Financial Covenants:
    1. Total net debt/EBITDA ≤ 3.0 times.
    2. Interest coverage ≥ 3.0 times.
    3. Minimum liquidity of $10 million (U.S.).
  • Status: Approved by credit committees; closing and initial financing are subject to negotiation and execution of definitive loan, guarantee, and security agreements and satisfaction of customary closing conditions.

• Repayment of Auramet Gold Prepayment Facility:

  • Purpose: Initial drawdown from the new revolver will extinguish the gold prepayment facility with Auramet International Inc.
  • Original Terms: Entered into on October 1, 2025, as part of the acquisition of Nevada assets from Equinox Gold Corp. Provided $25 million (U.S.) upfront in exchange for 7,830 gold ounces.
  • Repayment Schedule (Original): 18 equal monthly installments of 435 gold ounces from April 2026 to September 2027.
  • Repayment Mechanism: One cash-equivalent payment of the owed gold ounces, priced at the prevailing spot gold price at the time of repayment.
  • Condition: Repayment and termination are subject to the closing of the revolver and initial financing.

• U.S. Growth Projects Update:

  • Copperstone Project: Located in La Paz County, Arizona; company is in the final stages of delivering results from a prefeasibility study on this 100%-owned project.
  • Pan and Gold Rock Projects: Advancing life-of-mine plan optimization for the Pan mine and concurrently advancing mine development studies for the adjacent Gold Rock project (located 7 miles southeast of Pan).
  • Synergies: Potential for significant operating and cost synergies by combining the Pan mine and Gold Rock project.
  • Timeline: Anticipated release of an updated technical report in Q4 2026.

Notable Quotes

• "We are immensely proud to partner with two Tier 1 Canadian banks and global mining finance leaders. This $75-million (U.S.) revolver will provide us with lower-cost debt financing and, combined with our strong working capital position, will allow us to advance our high-quality pipeline of permitted U.S. growth projects without equity dilution. Following closing, the initial drawdown under the revolver will enable the repayment of the existing gold prepayment facility, which will give our investors more meaningful participation to current high gold prices." — Darren Blasutti, Executive Vice-President, Corporate Development