Great Panther secures C$25 million credit facilities via Asahi, Samsung

By Marisa Wong

Los Angeles, Sept. 21 – Great Panther Mining Ltd. announced it entered into a C$20 million gold dore prepayment agreement with Asahi Refining Canada Ltd., a wholly owned subsidiary of Asahi Holdings, Inc., as well as a C$5 million lead concentrate prepayment agreement with Samsung C&T U.K. Ltd., a wholly owned subsidiary of Samsung C&T Corp.

“The new credit facilities contribute an additional C$25 million in working capital funding, providing us with increased financial strength and flexibility to execute on our objectives of replacing resources, extending mine life, and unlocking the regional potential of the Tucano Gold Mine,” Great Panther chief financial officer Sandra Daycock said in a press release.

Under the dore agreement, Asahi has agreed to advance a C$20 million prepayment to Great Panther in consideration for the equivalent value in gold, to be delivered over a 12-month period in installments of equal value beginning in April 2022. The prepaid dore will be sold at a 0.5% discount to the spot price of gold at the time of delivery and will be used to offset repayments of the Asahi advance.

The Asahi advance will bear interest at one-month Libor plus 475 basis points and is secured by a pledge of all equity interests in Great Panther’s Brazilian subsidiary, Mina Tucano Ltda, which owns the Tucano Gold Mine.

Great Panther has a full option for early repayment of the Asahi advance, subject to a 3% penalty applied to the outstanding balance at the time of repayment.

Under the concentrate agreement, Samsung has agreed to advance a C$5 million prepayment to Great Panther’s Mexican subsidiary, Minera Mexicana El Rosario SA de CV in consideration for exclusive offtake of the lead concentrate production from the Topia Mine, up to a maximum contract quantity representing about 21 months of production from the mine. The concentrate agreement also gives Samsung a right of first offer on an additional 12 months of concentrate.

The Samsung advance has an 18-month term and will be repaid in equal monthly instalments beginning in April 2022. It will bear interest at three-month Libor plus 650 bps and will be secured by a pledge of all equity interests in Minera Mexicana.

Minera Mexicana has a full option for early repayment of the advance, subject to a 3% penalty.

The remaining balance of C$3.2 million on the company’s existing gold dore agreement with Samsung has been repaid in full and canceled, and the pledge of shares to Samsung of the company’s shares in Mina Tucano has been released.

The Vancouver, B.C.-based gold and silver producer owns a portfolio of assets in Brazil, Mexico and Peru.

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