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Klondex upsizes credit facilities to US$45M

Klondex Mines Ltd. said Feb. 22 that it upsized its credit facilities to US$45 million.

The increase includes an addition of US$5 million in the revolving credit facility to US$40 million and an additional working capital tranche of US$5 million.

In the fourth quarter of 2017, Klondex utilized the revolving facility to purchase 8,000 gold ounces at US$1,269 per ounce and made an early repayment for a gold loan with Franco-Nevada Corp.

Repaying the gold loan improved working capital by replacing current debt with non-current debt, and will improve 2018 quarterly cash flow as it frees up to 2,000 gold ounces per quarter.

Additionally, the company said that an agreement to supply gold to Waterton Precious Metals Fund II Cayman LP from the Fire Creek gold mine in Nevada will expire Feb. 28.

Klondex President and CEO Paul Huet said that the financial items will all have a significant positive impact on the company's working capital flexibility for 2018.