Amaroq Minerals Ltd. has announced that it has reached an agreement with Landsbankinn for a US$35 million Revolving Credit Facility, replacing its previous undrawn US$18.5 million facility for construction activities. The new agreement aims to simplify the structure of the debt package and strengthen the company's liquidity, providing increased financial flexibility. The CEO, Eldur Olafsson, expressed satisfaction with the arrangement, highlighting the benefits of the new Facilities in terms of favorable rates and long-term financial flexibility.
The US$35 million debt financing package consists of two facilities: a US$28.5 million facility for the completion of the Nalunaq development and general corporate purposes, and a US$6.5 million facility for general corporate purposes. The Facilities come with an arrangement fee, a commitment fee on unutilized amounts, and an expected maturity date of 1 October 2026. They will also be subject to certain ongoing covenant tests, with further details to be provided upon closing of definitive documentation.
Amaroq Minerals is expected to finalize the legally binding documentation for the Facilities and sign binding documents before the end of the year. The final agreement with Landsbankinn will be reached in agreement with current debt holders. The company's undrawn US$28.5 debt facilities will remain in place until this time.
Amaroq Minerals Ltd. is an independent mine development company with a substantial land package of gold and strategic mineral assets in Southern Greenland. Its principal asset is a 100% interest in the past producing Nalunaq Gold mine, which is due to go into production towards the end of 2024. The company also holds a portfolio of gold and strategic metal assets in Southern Greenland, covering the two known gold belts in the region, as well as advanced exploration projects at Stendalen and the Sava Copper Belt exploring for strategic metals such as Copper, Nickel, Rare Earths, and other minerals.