Sierra Metals Inc. entered into a new six-year senior secured corporate credit facility with Banco de Credito del Peru for funding of up to US$100 million.

The company said March 11 that the facility has a two-year principal repayment grace period and a four-year principal repayment period.

The credit facility will mature March 2025 with an interest rate of 3.15% plus the three-month London interbank offered rate.

Sierra Metals said the facility will provide flexibility to fund future capital projects in Mexico, as well as to finance corporate working capital requirements. The company also plans to use a portion of the proceeds to repay existing debt in the near term.

In February, the company secured environmental approval for an expansion of the tailings facility at its majority-owned Yauricocha mine in Peru.