Discovery Silver enters deal for $250M (U.S.) facility

Executive Summary

• Discovery Silver Corp. entered into a $250 million revolving credit facility (with an optional additional $100 million accordion feature) with a syndicate led by BMO, CIBC and NBC.
• The facility matures on September 15, 2028 and is secured by all of the company’s assets; proceeds may be used for general corporate purposes and future growth investments in Canada and Mexico.
• Concurrently, Discovery will terminate its existing $100 million senior term loan with Franco‑Nevada GLW Holdings Corp., which had remained undrawn.

Key Details

• Facility Size: Up to US$250 million; optional accordion for an additional US$100 million subject to lender commitments and conditions.
• Syndicate Members: Bank of Montreal (administrative agent, lender), BMO Capital Markets (sole bookrunner, co‑lead arranger), Canadian Imperial Bank of Commerce (co‑lead arranger, co‑syndication agent, lender), National Bank of Canada (co‑lead arranger, co‑syndication agent, lender).
• Maturity: September 15, 2028.
• Use of Proceeds: General corporate and working‑capital purposes, including financing future investments to support growth strategy in Canada and Mexico.
• Security: Secured by all assets of Discovery Silver Corp. and its material subsidiaries.
• Interest Terms:
• Term SOFR loans – interest = term SOFR + 0.10 % credit spread + margin of 2.50 %–3.50 % (based on consolidated net leverage ratio).
• U.S.‑dollar base rate loans – interest = BMO’s USD base rate + margin of 1.50 %–2.50 % (based on consolidated net leverage ratio).
• Standby Fee: Undrawn portion subject to a standby fee of 0.563 %–0.788 % per annum, tied to the company’s net leverage ratio.
• Letters of Credit: Facility also available via letters of credit under the same terms.
• Termination of Prior Debt: Existing $100 million senior term loan with Franco‑Nevada GLW Holdings Corp., dated April 15 2025 and undrawn, will be terminated following execution of the new facility.

Notable Quotes

“The revolving credit facility we have arranged with the syndicate will provide both increased financial capacity and greater flexibility as we advance our attractive growth profile in both Canada and Mexico.” – Tony Makuch, CEO, Discovery Silver Corp.