TORONTO, Aug. 10, 2015 /CNW/ - Sierra Metals Inc. (TSX:SMT)(BVL:SMT) ("Sierra Metals" or the "Company") announces that the remaining US$48M due on the Corona Acquisition Credit Facility ('the Facility") with Banco de Credito del Peru ("BCP") has been successfully refinanced effective August 7, 2015.
The most significant amendments to the facility are as follows:
- The remaining $48M due on the facility is split into 2 tranches:
- Tranche 1, in the amount of $24M has quarterly principal repayments of $1.25M beginning in November 2016 and ending in August 2020
- Tranche 2, in the amount of $24M has no quarterly principal repayments and to be repaid in full in August 2020
- One year principal repayment grace period
- Reduced Interest rate equal to 3.65% plus 3M LIBOR vs previous rate of 4.15% plus 3M LIBOR
- Term of the Facility extended for 5 Years
The cost of this restructuring was $0.36M equal to 0.75% of the restructured loan amount.
Ed Guimaraes, CFO, Sierra Metals commented: "This was a very successful refinancing for the Company where interest costs have been reduced and almost $20M of debt principal repayments are no longer due for the remainder of 2015 and 2016. Additionally, quarterly principal repayments thereafter have been reduced from $3.4M to $1.25M."
Mark Brennan, President and CEO commented: "The new facility provides the Company with increased financial flexibility during these difficult times of continued declining metal prices and allows for the completion of the Company's capital expenditure programs which will benefit the company with potential production increases and reduced risk exposure."
About Sierra Metals
Sierra Metals Inc. is a Canadian mining company focused on precious and base metals from its Yauricocha Mine in Peru, its Bolivar Mine and Cusi Mine in Mexico. In addition, Sierra Metals is exploring several precious and base metal targets in Peru and Mexico. Projects in Peru include Adrico (gold), Victoria (copper-silver) and Ipillo (polymetallic) at the Yauricocha property in the province of Yauyos and the San Miguelito gold properties in Northern Peru. Projects in Mexico include Bacerac (silver) in the state of Sonora, and La Verde (gold) at the Batopilas property in the state of Chihuahua.
The Company's shares trade on the Bolsa de Valores de Lima and the Toronto Stock Exchange under the symbol "SMT".
Except for statements of historical fact contained herein, the information in this press release may constitute "forward-looking information" within the meaning of Canadian securities law. Statements containing forward-looking information express, as at the date of this news release, the Company's plans, estimates, forecasts, projections, expectations or beliefs as to future events or results. These statements reflect the Company's current views with respect to future events and are necessarily based upon a number of assumptions and estimates that, while considered reasonable by the Company, are inherently subject to significant business, economic, competitive, political and social uncertainties and contingencies. Actual results might differ materially from results suggested in any forward-looking statements. The Company assumes no obligation to update the forward-looking statements, or to update the reasons why actual results could differ from those reflected in the forward-looking statements unless and until required by securities laws applicable to the Company. Additional information identifying risks and uncertainties is contained in filings by the Company with the Canadian securities regulators, which filings are available at www.sedar.com.
SOURCE Sierra Metals Inc.
For further information: For further information regarding Sierra Metals, please visit www.sierrametals.com or contact: Mike McAllister, Director, Corporate Development, Sierra Metals Inc., 1 (416) 366-7777, email@example.com; Ed Guimaraes, CFO, Sierra Metals Inc., 1 (416) 366-7777; Mark Brennan, President & CEO, Sierra Metals Inc., 1 (416) 366-7777