Northern Vertex Mining Corp. signed a flexible US$6 million working capital facility with Greenstone Resources II LP and drew the final US$5 million tranche from the US$20 million facility with Sprott Resource Lending (Collector) LP.
The convertible loan facility from Greenstone, which owns a 29.6% stake in the company, will accrue interest at 12% per annum, payable quarterly in arrears in cash, and will mature Jan. 31, 2020.
The company can initially draw down US$3 million on satisfaction of certain conditions, and plans to use the funds for the commissioning of its Moss gold-silver mine project in Arizona, for exploration, and for general working capital purposes.
Meanwhile, Northern Vertex agreed with Sprott to extend the maturity date of the credit facility to Nov. 29, 2019. The amortization period will now start on June 29, 2018.
Additionally, the gold call option allowing Sprott to purchase up to 6,000 ounces of gold until November 2021 was amended to reduce the strike price to US$1,275, from US$1,350 previously.
The company's preliminary economic assessment at its Moss mine pegged a posttax net present value, discounted at 5%, of US$93.0 million, a 52.5% internal rate of return and a 27-month payback period.