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Summit Royalties Ltd. (TSXV: SUM,OTC:SUMMF, OTCQX: SUMMF) ("Summit" or the "Corporation") is pleased to report that it has entered into a credit agreement with National Bank of Canada for a revolving credit facility (the "Facility") with an initial commitment of US$25 million. The Facility includes an accordion feature providing for up to an additional US$25 million, subject to the satisfaction or waiver of certain conditions, for total potential availability of US$50 million.
Drew Clark, President and CEO of Summit, commented: "Securing this credit facility marks an important milestone for Summit as we continue to execute on our growth strategy. The credit facility strengthens our balance sheet, provides us with significant financial flexibility to pursue larger accretive royalty and streaming acquisitions and significantly lowers our cost of capital. We are pleased to partner with National Bank of Canada, one of Canada's tier-one banks, and look forward to leveraging this new source of capital to accelerate our growth and create long-term value for our shareholders."
Key terms of the Facility include:
- Maturity: The Facility has an initial tenor of three years, with Summit having the right to request an extension of the maturity date, subject to satisfaction or waiver of certain conditions and the consent of the lenders;
- Purpose: The Facility is available for working capital and other general corporate purposes (including acquisitions permitted under the Facility);
- Interest rate: Advances bear interest at the Secured Overnight Financing Rate or the Canadian Overnight Repo Rate Average, as applicable, plus a credit spread adjustment depending on the tenor of the applicable loan and 2.50% to 4.00% per annum, depending on the Corporation's net leverage ratio;
- Standby fee: The undrawn portion of the Facility is subject to a standby fee of 0.5625% to 0.9000% per annum depending on the Corporation's net leverage ratio;
- Financial covenants: The Facility requires the Corporation to meet certain financial covenants, including a net leverage ratio, an interest coverage ratio and a minimum liquidity amount; and
- Security: The Facility is secured by certain assets of the Corporation and its material subsidiaries.
Other Corporate Updates
In connection with the previously-announced acquisition of Star Royalties Ltd., Summit has entered into an agreement to issue an aggregate of 269,696 common shares of Summit at a deemed price of $1.3905 per share in partial settlement of certain financial advisory fees in the amount of $375,000 (the "Debt Settlement"). Completion of the Debt Settlement is subject to acceptance by the TSX Venture Exchange. All common shares issued in connection with the Debt Settlement will be subject to a four-month statutory hold period.
In addition, Summit has granted an aggregate of 100,000 restricted share units of the Corporation ("RSUs") to an officer of the Corporation pursuant to its omnibus incentive plan (the "Plan").
Of the 100,000 RSUs granted, 50,000 RSUs are scheduled to vest on July 24, 2027 and the remainder on July 24, 2028. Once vested, each RSU represents the right to receive one common share in the capital of the Corporation per RSU held, a cash amount equivalent, or a combination thereof, in each case subject to the terms and conditions of the Plan and the RSU agreement.
About Summit Royalties Ltd.
Summit Royalties Ltd. is a precious metals royalty and streaming company. Its current portfolio is anchored by cash-flowing production with additional royalties on advanced development- and exploration-stage properties. Summit intends to become the fastest-growing royalty and streaming company by executing actionable, accretive acquisitions that increase production and drive cash flow growth. The Corporation's registered office is located at One First Canadian Place, Suite 3400, Toronto, ON, M5X 1A4.
ON BEHALF OF THE BOARD OF DIRECTORS OF Summit Royalties Ltd.
Drew Clark
President and Chief Executive Officer
Summit Royalties Ltd.
For more information, contact:
Connor Pugliese, Vice President, Corporate Development
info@summit-royalties.com
+1 (289) 380-1960
Follow Summit Royalties:
LinkedIn: https://www.linkedin.com/company/summit-royalties
X: https://x.com/SummitRoyalties
Forward-looking Statements
Certain statements contained in this news release may be deemed "forward‐looking statements" within the meaning of applicable Canadian securities laws. These forward‐looking statements, by their nature, require the Corporation to make certain assumptions and necessarily involve known and unknown risks and uncertainties that could cause actual results to differ materially from those expressed or implied in these forward‐looking statements. Forward‐looking statements are not guarantees of performance. Words such as "may", "will", "would", "could", "expect", "believe", "plan", "anticipate", "intend", "estimate", "continue", or the negative or comparable terminology, as well as terms usually used in the future and the conditional, are intended to identify forward‐looking statements. Information contained in forward‐looking statements, including with respect to any satisfaction or waiver of conditions for the accordion feature of the Facility; the initial tenor and any extension of the maturity date of the Facility; the expected use, interest rate, standby fees and satisfaction of financial covenants in connection with the Facility; the anticipated issuance of common shares of the Corporation in connection with the Debt Settlement; the acceptance by the TSX Venture Exchange of the Debt Settlement; the vesting of the RSUs; and the Corporation's strategy, objectives, anticipated growth and ability to execute acquisitions that increase production, drive cash flow growth and create long-term value for shareholders, are based upon certain material assumptions that were applied in drawing a conclusion or making a forecast or projection, including management's perceptions of historical trends, current conditions and expected future developments, current information available to the management of the Corporation, as well as other considerations that are believed to be appropriate in the circumstances. The Corporation considers its assumptions to be reasonable based on information currently available, but cautions the reader that its assumptions regarding future events, many of which are beyond the control of the Corporation, may ultimately prove to be incorrect since they are subject to risks and uncertainties that affect the Corporation and its businesses.
For additional information with respect to these and other factors and assumptions underlying the forward‐looking statements made in this news release concerning the Corporation, see the section entitled "Risks and Uncertainties" in the most recent management discussion and analysis of Summit which is filed with the Canadian securities commissions and available electronically under the Corporation's issuer profile on SEDAR+ (www.sedarplus.ca). The forward‐ looking statements set forth herein concerning the Corporation reflect management's expectations as at the date of this news release and are subject to change after such date. The Corporation disclaims any intention or obligation to update or revise any forward‐looking statements, whether as a result of new information, future events or otherwise, other than as required by law.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release. No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein.
