Signal Gold receives $16 million on initial draw of Nebari credit facility

Chicago, Feb. 28 – Signal Gold Inc. closed on its credit facility and qualified for the first drawdown of $16 million from its $21 million credit agreement recently announced with Nebari Gold Fund 1 LP, Nebari Natural Resources Credit Fund I LP, and Nebari Natural Resources Credit Fund II LP to advance the Goldboro project in Nova Scotia, according to a press release.

The company may elect for the second tranche of $5 million, subject to satisfying certain conditions.

The credit facility has a maturity date of two years from the initial draw with the option to extend up to 12 months.

Reported, earlier, the credit facility bears an annual coupon at SOFR plus 670 basis points with a 3% SOFR floor. The credit facility also has an original issue discount of 5% for the first 24 months for each tranche drawn under the facility, 6.25% for the period between 25-30 months inclusive of each draw, and 7.825% for the period between 30-36 months inclusive of each draw.

Interest accruing prior to March 31, 2024 shall be capitalized and added to the outstanding principal amount.

Proceeds of $16 million from the first tranche will be used to progress critical pre-development activities for the Goldboro Project and the repayment of the existing $8 million senior secured facility with Auramet International LLC

Signal Gold is a Toronto-based gold development company.

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