Torex Gold Resources unit gets waiver to lower liquidity threshold

By Sarah Lizee

Olympia, Wash., Dec. 22 – Torex Gold Resources Inc. said its wholly owned subsidiary, Minera Media Luna, SA de CV, received a waiver signed by BNP Paribas as administrative agent on behalf of lenders to lower the liquidity covenant threshold in its credit agreement to $30 million from $50 million until Jan. 31, 2018.

The waiver requires that the remaining $25 million available under the credit agreement, not yet drawn, is counted toward meeting the liquidity covenant threshold, but it may not be drawn by Minera Media Luna, according to a press release.

“A frequently asked question we have received is whether we would breach the liquidity covenants of our credit facility. This no cost waiver to temporarily reduce the liquidity covenant is helpful in that it extends the time before liquidity becomes a covenant breach risk,” Fred Stanford, president chief executive officer of Torex, said in the release.

“The high quality of support that the lenders have provided is appreciated and has been consistent throughout their relationship with Torex. This month we also received VAT returns of $13 million, which has helped to reduce liquidity risks.”

Torex is a gold producer based in Toronto.

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