Minera Alamos Moves to Strengthen Balance Sheet with Executed Term Sheet for US$75 Million Revolving Credit Facility from Scotiabank and National Bank
Rhea-AI Summary
Minera Alamos (TSXV: MAI / OTCQX: MAIFF) executed a term sheet on March 25, 2026 for a US$75 million three-year revolving credit facility with Scotiabank and National Bank.
The facility carries Term SOFR + a 3.25%–4.25% margin, senior security over material assets, and covenants including Total Net Debt/EBITDA ≤ 3.0x, Interest Coverage ≥ 3.0x, and minimum liquidity of US$10 million. Initial drawdown is intended to repay a US$25 million Auramet gold prepayment; closing remains subject to definitive documentation and customary conditions.
Positive
- US$75 million revolving credit facility executed term sheet
- Initial drawdown intended to extinguish US$25 million gold prepayment
- Facility provides lower cost debt option vs potential equity dilution
- Minimum liquidity covenant of US$10 million protects short-term cash
Negative
- Closing and initial funding remain subject to documentation and conditions
- Financial covenants (Net Debt/EBITDA ≤ 3.0x) may restrict operational flexibility
- Interest margin up to 4.25% increases borrowing cost if leverage rises
News Market Reaction – MAIFF
In the Mar 31 session, MAIFF gained 7.14%, reflecting a notable positive market reaction.
Data tracked by StockTitan Argus on the day of publication.
AI-generated analysis. How Rhea-AI works. Not financial advice.
Provides ability to bolster balance sheet for growth and enable repayment of existing gold prepayment facility
Toronto, Ontario--(Newsfile Corp. - March 31, 2026) - Minera Alamos Inc. (TSXV: MAI) (OTCQX: MAIFF) ("Minera Alamos" or the "Company") is pleased to announce that on March 25, 2026 the Company executed a term sheet for a new US
Revolving Credit Facility Key Terms
- Capacity of US
$75 million available on closing - Term of three years from closing date
- Interest rate of Term SOFR plus a margin spread between
3.25% and4.25% based on the Company's Total Net Debt / EBITDA ratio - Revolver to have senior security over the Company's material assets
- Customary financial covenants including: (1) Total Net Debt / EBITDA ≤ 3.0x, (2) Interest Coverage ≥ 3.0x, and (3) minimum of liquidity of US
$10 million - Scotiabank will be Administrative Agent, with both Scotiabank and National Bank acting as Co-Lead Arrangers and Joint Bookrunners
Darren Blasutti, EVP Corporate Development, commented, "We are immensely proud to partner with two tier-1 Canadian banks and global mining finance leaders. This US
Repayment of Auramet Gold Prepayment Facility
The Company intends to use an initial drawdown under the Revolver to extinguish its gold prepayment facility (the "Gold Prepay") with Auramet International, Inc. ("Auramet"), who has helped support the Company's financing efforts in prior lower gold price environments. The Gold Prepay, originally entered into on October 1, 2025, as a part of the Company's acquisition of Nevada assets from Equinox Gold Corp., provided upfront cash of US
Update on U.S. Growth Projects
As previously reported, the Company is in the final stages of delivering the results of a pre-feasibility study on its
About Minera Alamos
Minera Alamos is a growing North American gold production and development company with projects in Nevada, Arizona, and Mexico. The Company owns the Pan Operating Complex in White Pine County, Nevada, comprised of the producing Pan heap leach gold mine and the adjacent permitted Gold Rock Project, as well as the nearby past-producing Illipah Project. The Company also owns the Copperstone Mine and associated infrastructure in La Paz County, Arizona, a permitted, advanced development gold project. The Company maintains a portfolio of high-quality Mexican assets, including the Cerro de Oro open pit gold project in northern Zacatecas which has considerable past drilling and metallurgical work completed and is currently being guided through the permitting process by the Company and its permitting consultants. Other Mexican projects owned by the Company include the Santana open-pit, heap-leach gold mine in Sonora and the PEA-stage, permitted La Fortuna open pit gold project in Durango. The Company's strategy is to become a leading, Americas-focused intermediate gold producer by growing production at its Pan Operating Complex and developing its pipeline of high-quality, low-capital projects while expanding gold resources across its portfolio.
For Further Information, Please Contact:
Darren Blasutti, EVP Corporate Development
416-306-0990 ext 208
dblasutti@mineraalamos.com
David Stewart, VP Capital Markets & Strategy
647-294-8361
dstewart@mineraalamos.com
Website: www.mineraalamos.com
Caution Regarding Forward-Looking Statements
This press release includes certain "forward-looking information" within the meaning of applicable Canadian securities legislation. All information herein, other than information of historical fact, constitutes forward-looking information. Forward-looking information is frequently, but not always, identified by words such as "expects", "anticipates", "believes", "intends", "estimates", "potential", "possible", and similar expressions, or statements that events, conditions, or results "will", "may", "could", or "should" occur or be achieved. In this news release, forward-looking statements relate to, among other things, statements regarding: the Revolver, including expectations the timing and completion of the Revolver and related drawdowns; the repayment and extinguishments of the Gold Prepay; the expected timing for the completion of the pre-feasibility study at the Copperstone Gold Project and the technical report for the combined Pan mine and Gold Rock Project; the expected potential for the Company to realize significant operating and cost synergies by combining the Pan mine and Gold Rock Project; and the Company's ability to give its investors more meaningful participation to current high gold prices through completion of the Revolver and repayment of the Gold Prepay This information is based on information currently available to The Company and The Company provides no assurance that actual results will meet management's expectations.
The forward-looking information is based on assumptions and addresses future events and conditions that, by their very nature involve inherent risks and uncertainties. Actual results could differ materially from those currently anticipated in forward-looking information for many reasons. The Company's financial condition and prospects could differ materially from those currently anticipated in forward-looking information for many reasons such as: an inability to receive requisite permits for mine operation, exploration or expansion; an inability to finance and/or complete updated resource and reserve estimates and technical reports which support the technical and economic viability of mineral production; changes in general economic conditions and conditions in the financial markets; changes in demand and prices for minerals; litigation, legislative, environmental and other judicial, regulatory, political and competitive developments; technological and operational difficulties encountered in connection with The Company's activities; and other matters discussed in this press release and in filings made with securities regulators. This list is not exhaustive of the factors that may affect any of The Company's forward-looking information. These and other factors should be considered carefully, and readers should not place undue reliance on the Company's forward-looking information. The Company does not undertake to update any forward-looking information that may be made from time to time by the Company or on its behalf, except in accordance with applicable securities laws.
NEITHER TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER (AS THAT TERM IS DEFINED IN THE POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/290543