Golden Queen Enters Into New Term Loan Facility for $31Million

Golden Queen Mining (TSX:GQM) has announced that it has entered into an agreement to secure a new term loan facility in the amount of $31 million.
As quoted in the press release:

Under the terms of the agreement, the maturity date of the Facility is May 21, 2019 and the annual interest rate is 8%, payable quarterly in arrears. The Company may pre-pay all or part of the Facility at any time prior to the maturity date and amounts prepaid will not be subject to penalty.
The Company will use the net proceeds of the Facility to make a partial prepayment of the US$37,500,000 loan previously provided by the Lenders in 2015. The balance of the prior loan will be repaid from available cash on hand.
The loan agreement provides for a US$930,000 closing fee payable by the Company to the Lenders. As well, the Company has issued warrants to the Lenders to acquire up to 8 million common shares in the Company. The warrants have a five (5) year term and are exercisable at US$0.85 per common share. Any shares issued in connection with the exercise of the warrants are subject to a Canadian hold period expiring four (4) months after issuance. The securities are also subject to restrictions on resale under US federal securities laws.
Andrée St-Germain, the Company’s VP Finance and Chief Financial Officer, states: “The Company is pleased with the continued support of the Clay family. The on-going excellent relationship with the Clay family illustrates their commitment to the Soledad Mountain Project”.

Click here to read the full press release.