Aura Minerals Inc. on Jan. 27 said it amended the previously agreed-upon gold sales prepayment facility with Auramet Trading LLC subsidiary Auramet International LLC.
Pursuant to the amendment, Auramet will loan US$9 million to the company, which will be used for the full repayment of the gold loan and to provide additional working capital of C$2.5 million.
The facility is guaranteed by the company's interests in the San Andres gold project in Honduras, the Ernesto/Pau-a-Pique and Sao Francisco gold mines, the Serrote da Laje copper project in Brazil and the Aranzazu copper project in Mexico, and is secured by a continuing security interest in all of the company's present and future personal property.
Additionally, Aura has entered gold purchase agreements for all the gold ounces produced at the company's mines, to be sold at market rates for a period of two years.
The principal on the facility will be repaid in 30 equal biweekly installments of US$300,000 starting in May 2017 and ending in June 2018.
Interest is calculated as a discount of US$10.00 per ounce of gold purchased by Auramet for 7,200 ounces per month, commencing in February.
The company may prepay the entire amount of the facility without penalty.