Amaroq doubles revolving credit facility to $70 million

Amaroq Ltd. (AIM, NASDAQ Iceland: AMRQ, OTCQX: AMRQF) has entered into an amended revolving credit facility with Landsbankinn and Gunvor Group, increasing its borrowing capacity to $70 million from $35 million, according to a press release statement.

The mine development company focused on Greenland operations said the facility reduces funding costs while extending the maturity date to May 1, 2028. Interest will accrue based on Term SOFR plus an applicable margin starting at 7.50%, with potential reductions tied to earnings performance.

The margin decreases to 6.25% when last twelve months EBITDA exceeds CAD 25 million, 5.00% above CAD 50 million, and 4.50% above CAD 70 million. The facility carries an origination fee of 0.55% of total commitments, totaling $385,000.

Gunvor Group, described as one of the world's largest physical commodities traders, will purchase gold produced at Amaroq's Nalunaq mine as part of the arrangement. The facility remains secured by property mortgages, equipment, share pledges, and bank account pledges.

"We are very pleased to have executed this agreement with Landsbankinn and Gunvor, doubling the size of our revolving credit facility to $70 million," said Ellert Arnarson, Amaroq's chief financial officer. The funds can be used for general corporate purposes subject to compliance with financial covenants.

The company operates the Nalunaq Gold mine in Greenland and maintains exploration projects in the region's gold belts and copper properties. Amaroq is completing Phase 2 construction of its Nalunaq processing plant while gold production continues to generate cash flows.

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