Andean Precious Metals Strengthens Balance Sheet with New $40 Million Credit Facility from National Bank of Canada
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Andean Precious Metals announced on November 25, 2025, that it has secured a new US$40 million, two-year revolving credit facility with National Bank of Canada (NBC). The facility has an interest rate of SOFR + 4.25% and will be used to strengthen the company's capital structure, enhance financial flexibility, and support strategic initiatives. This new facility consolidates and retires prior credit arrangements, streamlining the company's balance sheet. The facility's availability will automatically reduce to US$30 million on its first anniversary.
The establishment of a US$40 million credit facility with a major Canadian bank is a materially positive event. This move significantly de-risks the company's balance sheet and enhances its financial flexibility.
- Improved Capital Structure: The new facility allows Andean to consolidate and retire existing debt, which as of September 30, 2025, stood at US$52.7 million ($40.3M current, $12.4M long-term). This streamlines their liabilities under more favorable terms with a reputable financial institution. The interest rate of SOFR + 4.25% is competitive for a producer of this size.
- Vote of Confidence: Securing this facility from National Bank of Canada serves as a strong third-party validation of Andean's operational performance and financial health, particularly following its graduation to the senior TSX exchange in January 2025.
- Strategic Optionality: This news comes shortly after the company filed a US$200 million base shelf prospectus on November 10, 2025. Together, these actions arm the company with significant financial firepower and optionality to pursue its stated strategy of growth through M&A in the Americas.
- Context of Performance: The company just reported record financial results for Q3 2025, driven by high metal prices, which increased liquid assets to a record US$121 million. While these results were strong, they masked an operational shortfall at the Golden Queen mine due to leaching issues. This new credit facility provides a robust liquidity buffer, mitigating risks associated with potential future operational hiccups.
In summary, this is not a game-changing event like a new discovery, but it is a critical step in maturing the company's corporate and financial structure. It lowers the cost of capital, reduces financial risk, and positions the company to execute on its growth strategy from a position of strength.
Andean Precious Metals is a precious metals producer with two primary assets: 1. San Bartolome (Bolivia): A processing facility that purchases oxide silver ore from the state-owned mining company COMIBOL and other third-party miners. It does not own a mine itself but leverages its plant's capacity. A long-term agreement with COMIBOL for up to 7 million tonnes of ore is a key feed source. 2. Golden Queen (California, USA): A conventional open-pit, heap-leach gold and silver mine. The company's focus here is on operational optimization and exploration to extend the mine life.
The company's strategy is to grow into a mid-tier producer through disciplined M&A in the Americas, supported by cash flow from its existing operations.