Silvercorp Metals Inc. (NYSE American: SVM) announced it has secured a three-year syndicated term loan facility totaling RMB 1.5 billion, approximately $220 million, according to a company statement.

The facility received total bank commitments of RMB 2 billion ($293 million), representing twice the original target of RMB 1 billion. Standard Chartered Bank (Hong Kong) Limited served as the sole mandated lead arranger and bookrunner.

The financing consists of two tranches: Facility A offers RMB 425.5 million at a floating rate based on CNH HIBOR plus a 1.92% annual margin, while Facility B provides RMB 1.047 billion at a fixed 3.67% annual rate. Both tranches include provisions for reduced interest rates based on the company's consolidated net leverage ratio.

Repayments will be made in RMB using dividends received from the company's China operations outside of China. The facility will be guaranteed and secured by certain accounts and share security from Silvercorp and select subsidiaries.

The Canadian mining company stated the proceeds will support general corporate purposes and global working capital requirements. Silvercorp produces silver, gold, lead, and zinc, with operations that include growth opportunities in Kyrgyzstan and Ecuador.

The facility complements the company's existing cash reserves and operating cash flow, according to the statement. The three-year term begins from the initial drawdown date.