Discovery Announces Agreement for US$250 Million Revolving Credit Facility

Rhea-AI Summary

Discovery Silver Corp. (OTCQX: DSVSF) has secured a US$250 million revolving credit facility with a syndicate of financial institutions including BMO, CIBC, and NBC. The facility, maturing on September 15, 2028, includes an accordion feature for an additional US$100 million subject to conditions.

The facility will replace the company's existing undrawn US$100 million senior debt facility with Franco-Nevada GLW Holdings Corp. Interest rates will be based on Term SOFR plus margins ranging from 2.50% to 3.50% per annum, depending on the company's leverage ratio. The facility will support Discovery's growth strategy across its operations in Canada and Mexico, including the Cordero silver project and the recently acquired Porcupine Complex gold operations.

Positive

• Secured significant US$250 million credit facility with potential for US$100 million expansion
• Extended maturity timeline to September 2028 provides long-term financial flexibility
• Facility replaces smaller US$100 million debt facility, increasing available capital
• Support from major financial institutions (BMO, CIBC, NBC) demonstrates credibility

Negative

• Interest rates tied to Term SOFR plus up to 3.50% margin could result in significant financing costs
• Facility is secured by all assets of the Company and material subsidiaries
• Drawdowns subject to satisfaction of customary conditions precedent may limit immediate access

News Market Reaction

+2.80%

1 alert

+2.80% News Effect

On the day this news was published, DSVSF gained 2.80%, reflecting a moderate positive market reaction.

Data tracked by StockTitan Argus on the day of publication.

TORONTO, Sept. 15, 2025 (GLOBE NEWSWIRE) -- Discovery Silver Corp. (TSX: DSV, OTCQX: DSVSF) (“Discovery” or the “Company”) today announced that the Company has entered into an agreement (the “Agreement”) with a syndicate of financial institutions (the “Syndicate”) for a revolving credit facility (the “Revolving Credit Facility” or “Facility”) that allows the Company to borrow up to US$250 million, with an accordion feature for an additional US$100 million subject to receipt of additional lender commitments and satisfaction of certain other conditions. The Syndicate includes Bank of Montreal (“BMO”), acting as administrative agent and lender, BMO Capital Markets, acting as sole bookrunner and co-lead arranger, and Canadian Imperial Bank of Commerce (“CIBC”) and National Bank of Canada (“NBC”) acting as co-lead arrangers, co-syndication agents and lenders.

Tony Makuch, Discovery’s CEO, commented: “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. We appreciate the support BMO, CIBC and NBC have demonstrated in entering into the Agreement with Discovery and look forward to working with them as we continue to build the value of our company.”

The Facility will mature on September 15, 2028, and is available for general corporate and working capital purposes, including financing future investments as the Company advances its growth strategy. The Facility includes terms and conditions customary for a transaction of this nature, and is secured by all assets of the Company and its material subsidiaries. Advances under the Facility are subject to the satisfaction of certain customary conditions precedent.

The Facility is available by way of (i) term Secured Overnight Financing Rate (“Term SOFR”) loans, with interest accruing at Term SOFR plus a credit spread adjustment of 0.10% per annum plus an applicable margin ranging from 2.50% to 3.50% per annum based on the Company’s consolidated net leverage ratio at the end of each fiscal quarter, (ii) US dollar base rate loans, with interest accruing at BMO’s US dollar base rate plus an applicable margin ranging from 1.50% to 2.50% per annum, based on the Company’s consolidated net leverage ratio at the end of each fiscal quarter and (iii) letters of credit. The undrawn portion of the Facility is subject to a standby fee ranging from 0.563% to 0.788% per annum, based on the Company’s consolidated net leverage ratio at the end of each fiscal quarter.

Following the entering into of the Agreement, Discovery will terminate the existing term loan agreement with Franco-Nevada GLW Holdings Corp. involving a US$100 million senior debt facility, entered into as of April 15, 2025, which remained undrawn as of the date of termination.

ABOUT DISCOVERY

Discovery is a growing North American-focused precious metals company. The Company has exposure to silver through its first asset, the 100%-owned Cordero project, one of the world’s largest undeveloped silver deposits, which is located close to infrastructure in a prolific mining belt in Chihuahua State, Mexico. On April 15, 2025, Discovery completed the acquisition of the Porcupine Complex, transforming the Company into a new Canadian gold producer with multiple operations in one of the world’s most renowned gold camps in and near Timmins, Ontario. Discovery owns a dominant land position within the camp, with a large base of Mineral Resources remaining and substantial growth and exploration upside.

On Behalf of the Board of Directors,

Tony Makuch, P. Eng
President, CEO & Director

For further information contact: 
Mark Utting, CFA
SVP Investor Relations
Phone: 416-806-6298
Email: mark.utting@discoverysilver.com
Website: www.discoverysilver.com

CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION

This press release contains forward-looking statements relating to expected future events, including without limitation the satisfaction of all conditions precedent for the execution and delivery of the final documentation relating to the Facility, the realization of anticipated benefits relating to the Facility including but not limited to the Company’s growth plans, potential finance investments and acquisitions, all of which involve risks and uncertainties. Although the forward-looking statements contained in this press release are based upon what management believes to be reasonable assumptions, investors cannot be assured that actual results will be consistent with these forward-looking statements, and the differences may be material. Actual results and growth plans may change, and may differ materially from management expectations as projected in such forward-looking statements for a variety of reasons, including the impossibility to satisfy the conditions precedent set out in the Facility in order to finalize the definitive documents and draw down on the Facility, market and general economic conditions (including as a result of tariffs and other trade measures); price of gold and other commodities; timing of receipt of permits, availability of water and power, availability of labour and other local economics, and the other risks and uncertainties discussed in the materials filed by the Company with the Canadian securities regulatory authorities and available on SEDAR+ at www.sedarplus.ca. There can be no assurance as of the completion or financing of the Facility referred to above.

Due to the potential impact of these factors, Discovery disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, unless required by applicable law. 

FAQ

What is the size of Discovery Silver's (DSVSF) new credit facility?

Discovery Silver secured a US$250 million revolving credit facility with an accordion feature allowing for an additional US$100 million subject to certain conditions.

When does Discovery Silver's new credit facility mature?

The revolving credit facility matures on September 15, 2028.

What are the interest rates for Discovery Silver's new credit facility?

The facility offers Term SOFR loans with interest at Term SOFR plus 0.10% and an additional margin of 2.50% to 3.50% based on the company's leverage ratio.

Which banks are involved in Discovery Silver's credit facility?

The syndicate includes Bank of Montreal (BMO) as administrative agent, Canadian Imperial Bank of Commerce (CIBC), and National Bank of Canada (NBC) as co-lead arrangers.

How will Discovery Silver use the new credit facility?

The facility will be used for general corporate and working capital purposes, including financing future investments as the company advances its growth strategy in Canada and Mexico.