Klondex Increases Credit Facilities to $45 Million, Complimenting 2018 Cash Flow Initiatives; Company Management to Participa...
22 Febrero 2018 - 3:15PM
Klondex Mines Ltd. (TSX:KDX) (NYSE American:KLDX)
(“Klondex” or the “Company”) today announced the Company has
increased the borrowing capacity of its credit facilities. The
Company also announced its participation in the BMO Capital Markets
27th Global Metals and Mining Conference.
The Company has increased its revolving credit
facilities by $10 million to $45 million. The increase includes an
addition of $5 million in the revolving credit facility (the
“Revolver”) to $40 million and an additional working capital
tranche of $5 million. During the fourth quarter of 2017,
Klondex utilized the Revolver to purchase 8,000 gold ounces at
$1,269 per ounce and delivered them against its outstanding gold
loan to Franco-Nevada, one year early. The gold loan is now
paid in full. Klondex has delivered a total of 38,250 gold ounces
to Franco-Nevada since February 2014. Repaying the gold loan
improved working capital by replacing a current debt with a
non-current debt and will improve 2018 quarterly cash flow as it
frees up 2,000 gold ounces per quarter. Additionally, the Company’s
gold supply agreement with Waterton will expire on February 28,
2018. This agreement provides the option for Waterton to purchase
gold produced from the Fire Creek Mine. Historically, the realized
purchase price under this agreement has been at a discount to
market price, which negatively impacted Klondex’s cash flow.
Barry Dahl, the Company’s Chief Financial
Officer, said “It’s been a pleasure working with Investec Bank plc
since 2016. Over the years, Investec has been flexible to
structure the credit facilities to match the growth of the
Company.”
Paul Huet, President and Chief Executive
Officer commented, “These three financial items will all have
a significant positive impact on our working capital flexibility
for 2018. Historically, Klondex’s focus has concentrated on
growth and consolidating the mining district where we operate in
Nevada. Our focus for 2018 is different. In 2018, we have refocused
our efforts on generating cash. This emphasis was a contributing
factor in the decision to place True North under care and
maintenance, which should provide an opportunity for the Company to
add cash to the balance sheet. As previously stated on December 21,
2017, Klondex will continue to utilize our core competencies and
focus on narrow vein, high grade underground mining in Nevada. The
Mars pit is a new discovery that we believe provides significant
growth potential and future optionality for the Company.”
BMO Conference
Paul Huet, the Company’s President and Chief
Executive Officer will participate in the BMO Capital Markets 27th
Global Metals and Mining Conference in Hollywood, Florida on
February 28, 2018. The presentation will begin at approximately
8:45am Eastern Standard Time. A live audio webcast of the
presentation may be accessed through the Investor Relations section
of the Company’s website: www.klondexmines.com.
About Klondex Mines Ltd.
(www.klondexmines.com)Klondex
is a junior-tier gold and silver mining company focused on
exploration, development, and production in a safe, environmentally
responsible, and cost-effective manner. The Company has 100%
interests in four producing mineral properties: the Fire Creek
Mine, the Midas Mine and ore milling facility, the Hollister Mine,
all of which are located in the state of Nevada, USA, and the True
North Mine and mill in Manitoba, Canada. The Company also has a
100% interest in the Aurora mine and ore milling facility, also
located in Nevada, USA.
Contact: Mike
BecksteadDirector, Investor RelationsO: 775-284-5757M:
406-290-4165mbeckstead@klondexmines.com
Cautionary Note Regarding
Forward-looking Information This news release contains
certain information that may constitute forward-looking information
or forward-looking statements under applicable Canadian and United
States securities legislation (collectively, “forward-looking
information”), including but not limited to the financial items
mentioned having a significant positive impact to working capital,
focusing on profitability and generating cash, the opportunity for
the Company to add cash to the balance sheet, focusing on narrow
vein high grade underground mining in Nevada and the Mars pit
providing significant growth potential and future optionality for
the Company. This forward-looking information entails various risks
and uncertainties that are based on current expectations, and
actual results may differ materially from those contained in such
information. These uncertainties and risks include, but are not
limited to, the strength of the global economy; the price of gold;
operational, funding and liquidity risks; the degree to which
mineral resource estimates are reflective of actual mineral
resources; the degree to which mineral reserve estimates are
reflective of actual mineral reserves; the degree to which factors
which would make a mineral deposit commercially viable are present;
the risks and hazards associated with underground operations; and
the ability of Klondex to fund its substantial capital requirements
and operations. Risks and uncertainties about the Company’s
business are more fully discussed in the Company’s disclosure
materials filed with the securities regulatory authorities in
Canada and United States available at www.sedar.com and
www.sec.gov, respectively. Readers are urged to read these
materials. Klondex assumes no obligation to update any
forward-looking information or to update the reasons why actual
results could differ from such information unless required by
law.
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