Golden Queen Mining Co. Ltd. said Oct. 12 that its 50%-owned subsidiary Golden Queen Mining Co. LLC, or GQM LLC, secured a US$20 million revolving credit loan facility.

The loan, obtained from the company's partners in GQM LLC, bears an annual interest rate of 8% and will mature on March 31, 2020. Golden Queen may pre-pay all or part of the facility at any time before maturity.

The company drew an initial US$5 million on the facility for general working capital.

In connection with the facility, the lenders were issued 21,486 warrants, with each warrant allowing the holder to acquire a GQM LLC unit at 112.5% of the per-unit value for a five-year period. The warrants represent a fully diluted 7.5% interest in GQM LLC, and if exercised will dilute Golden Queen's stake in the former to 46.25%.

GQM LLC operates the Soledad Mountain gold-silver mine in California.