Titan Mining Corp. secured a second ranking secured credit facility of up to US$18.7 million from a company controlled by Titan Executive Chairman Richard Warke, who committed to financing its operations into 2019.
The second ranking facility will mature in December 2020 and will bear annual interest of 8% on US$3.7 million and 7% plus London interbank offered rate on US$15.0 million.
The company will issue 2.5 million warrants to the lender, with each exercisable within five years for 1 common share at C$1.40.
Titan said Jan. 16 that it has a 2019 exploration budget of US$9 million for its Empire State zinc mine in New York and will spend about US$3 million in the first quarter on exploration drilling to test near-mine and district targets. The new credit facility is subordinate to the Bank of Nova Scotia's first-half 2018 facility with Titan.
The company plans to complete an updated mineral resource estimate and development plan in the first half for the #2D zone, where recent exploration returned intervals of 52.8 feet assaying 8.6% zinc, 21.1 feet assaying 11.8% zinc, and 103.4 feet assaying 6.0% zinc.