Sandfire Resources America Announces US$12 Million Bridge Loan Agreement

Rhea-AI Summary

Sandfire Resources America announced a bridge loan agreement with its major shareholder, Sandfire BC Holdings, and its subsidiary, Tintina Montana. The loan totals up to US$12 million at an interest rate of 5% per annum, maturing by June 30, 2022. The funds will support the Black Butte Copper Project and working capital. Sandfire Resources America will act as guarantor, with no company securities issued under this agreement. The transaction requires approval from the TSX Venture Exchange.

Positive

• Secured a bridge loan of up to US$12 million for project funding.
• Interest rate of only 5% per annum is relatively low.
• Loan proceeds aimed at advancing the Black Butte Copper Project.

Negative

• Loan maturity is relatively soon, by June 30, 2022.
• Company must seek additional financing to service the loan.

WHITE SULPHUR SPRINGS, Mont., Sept. 08, 2021 (GLOBE NEWSWIRE) -- Sandfire Resources America Inc. ("Sandfire America" or the "Company") announces that it has entered into a bridge loan agreement (the "Agreement") with Sandfire BC Holdings (Australia) Pty Ltd. ("Sandfire BC"), the Company's largest shareholder, and Tintina Montana Inc., a wholly-owned subsidiary of the Company ("Tintina Montana").

Pursuant to the Agreement, among other things, Sandfire BC will lend an aggregate of up to US$12.0 million to Tintina Montana (the "Loan") through one or more advances. The Loan shall bear interest at the rate of five percent (5%) per annum, payable in monthly installments, and the Loan will have a latest maturity date of June 30, 2022, subject to the terms of the Agreement.

In connection with the Loan, the Company will act as guarantor to Sandfire BC. Tintina Montana will issue a promissory note to Sandfire BC in respect of each advance under the Loan on the date of the applicable advance.

The Company intends to use the proceeds of the Loan to complete the proposed work program on the Company’s Black Butte Copper Project and working capital purposes. The Company intends to service and repay the Loan by completing either debt or equity financings.

No securities of the Company are issuable under the Agreement. The Agreement and any subsequent financing is subject to approval of the TSX Venture Exchange.

Contact Information:
Sandfire Resources America Inc.
Nancy Schlepp, VP of Communications
Mobile: 406-224-8180
Office: 406-547-3466
Email: nschlepp@sandfireamerica.com

Cautionary Note Regarding Forward-Looking Statements: Certain disclosures in this document constitute "forward looking information" within the meaning of Canadian securities legislation, including statements regarding the Agreement, the Company's financing options and expected outcomes. In making these forward-looking statements, the Company has applied certain factors and assumptions that the Company believes are reasonable, including that the Company will receive required regulatory approvals, and that the Company will be able to secure additional funding to execute its plans,. However, the forward-looking statements in this document are subject to numerous risks, uncertainties and other factors, including delays in obtaining or inability to obtain required government or other regulatory approvals or financing. There can be no assurance that such statements will prove to be accurate, and actual results and future events could differ materially from those anticipated in such statements. Readers are cautioned not to place undue reliance on forward-looking statements. The Company does not intend, and expressly disclaims any intention or obligation to, update or revise any forward-looking statements whether as a result of new information, future events or otherwise, except as required by law.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

FAQ

What is the purpose of the US$12 million loan by Sandfire Resources America?

The loan is intended to complete the work program on the Black Butte Copper Project and for working capital purposes.

What are the terms of the loan agreement announced by Sandfire Resources America?

The loan bears an interest rate of 5% per annum and matures on June 30, 2022.

Who is providing the bridge loan to Sandfire Resources America?

The bridge loan is being provided by Sandfire BC Holdings, the company's largest shareholder.

Will any securities be issued under the loan agreement for Sandfire Resources America?

No securities of the company are issuable under the loan agreement.

What approvals are needed for the loan agreement from Sandfire Resources America?

The agreement and any subsequent financing are subject to approval from the TSX Venture Exchange.