Excelsior Mining announces extension and increase of Nebari credit facility


PHOENIX, 23 December 2021 / PRNewswire / – Excelsior Mining Corp. (TSX: MIN) (OTCQX: EXMGF) (FSE: 3XS) (“Excelsior” or the “Company”) is pleased to announce that it and its wholly owned subsidiary Excelsior Mining Arizona, Inc (“Excelsior Arizona”) ) has agreed with Nebari Natural Resources Credit Fund I LP (“Nebari”) to extend the maturity date of its $ 15 million credit facility to September 29, 2023. In addition, subject to the satisfaction of certain conditions, Nebari has undertaken to provide an additional $ 15 million credit facility (increasing the total facility to $ 30 million) and further extend the maturity date of the facility to July 31, 2024.

Stephen Twyerould, Chief Executive Officer of the Company, commented “Nebari has been an excellent partner in the development of the Gunnison project. This expansion, and the availability of additional funding, leaves Excelsior well positioned to move forward with its strategy of restarting and operating the Johnson Camp mine to generate cash flow as Gunnison ramps up and raffinate neutralization plant is designed and built. “

The Company, Excelsior Arizona and Nebari have entered into an Amended and Restated Credit Agreement (the “ARCA”). ARCA provides for the extension of the due date of $ 15 million credit facility to September 29, 2023 (the “first extension”). ARCA also provides for the availability of another $ 15 million (the “Facility Increase”) and a further extension of the maturity date of the Facility to July 31, 2024 (the “second extension”). The increase in the facility provides for an initial drawdown of $ 5 million and two additional prints of $ 5 million each at the sole discretion of Excelsior Arizona. There are no ordinary shares, warrants or other convertible securities that can be issued in favor of Nebari within the framework of the ARCA. The proceeds from the increase in the facility will be used to progress to and restart open pit mining operations at the Johnson Camp Mine (“JCM”), establish a new heap leach facility and complete associated copper production.

Each of the First Expansion, Second Expansion, and Facility Increase is subject to certain consents from Triple Flag International Ltd. (“Triple Flag”) which are described below. The facility increase and second extension are also subject to certain additional conditions, including completion of additional due diligence by Nebari, receipt of all permits required for Excelsior’s JCM operating plan, additional security on the Strong & Harris project and the conclusion of certain agreements with Triple Flag.

In order to proceed with ARCA, certain consents and agreements are required from Triple Flag regarding the existing Copper Buy and Sell Agreement (the “Flow Agreement”). Triple Flag agreed to modify the stream agreement to allow the first extension in exchange for removing the company’s right to repurchase, under certain circumstances, part of the metal stream and re-pricing the purchase of 3.5 million ordinary shares of Triple Flag warrants (the “Warrants”) to have an exercise price of CA $ 0.54 per ordinary share (25% premium over the current market price) from a previous exercise price of CA $ 1.50. Triple Flag further agreed to modify the flow agreement to allow for the increased installation and second expansion, subject to certain conditions being met. These conditions include Triple Flag and Nebari reaching agreement on certain security matters.

Nebari and Triple Flag deal at arm’s length with the Company. There are no commissions or finder’s fees payable in connection with the transactions described in this press release. The modification of the terms of the warrants is subject to the approval of the Toronto Stock Exchange and will not be effective until the 10the business day from the date of this press release. There can be no assurance that the conditions for the Facility Increase or Second Extension will be met.

About Excelsior Mining

Excelsior “The copper solutions company“is a mineral exploration and production company that owns and operates the Gunnison copper project at Cochise County, Arizona. The project is a low cost, environmentally friendly in situ recovery copper mining project that is licensed for 125 million pounds per year of copper cathode production. Excelsior also owns the former producing Johnson Camp mine and a portfolio of exploration projects, including the Peabody sill and the Strong and Harris deposits.

Excelsior’s technical work on the Gunnison copper project and the Johnson Camp mine is supervised by Stephen Twyerould, member of AUSIMM, President and CEO of Excelsior and qualified person within the meaning of National Instrument 43-101 . Mr. Twyerould has reviewed and approved the technical information contained in this press release relating to the Gunnison Copper Project and the Johnson Camp Mine, as well as the underlying sampling, analysis and test data.

For more information about Excelsior, please visit our website at www.excelsiormining.com.

Caution regarding forward-looking information

This press release contains “forward-looking information” regarding expected developments and events that may occur in the future. Forward-looking information contained in this press release includes, but is not limited to, statements regarding: (i) the future development plans of the Gunnison Project and its status as a low cost in situ recovery copper mining project and environmentally friendly; (ii) future copper production from the Gunnison project and Johnson Camp mine; (iii) use of the proceeds of the facility increase; (iv) fulfillment of the conditions for the first extension, the increase in facilities and the second extension; and (v) approval of the revision of the price of the warrants.

In some cases, forward-looking information may be identified by the use of words such as “plans”, “expects” or “does not expect”, “budget”, “planned”, “estimates”, ” forecasts “,” intention to “,” anticipates “or” does not anticipate “, or” believes “, or variations of these words and expressions or state that certain actions, events or results” may “,” could “,” would “,” could “,” occur “or” be achieved “suggesting future results, or other expectations, beliefs, plans, goals, assumptions, intentions or statements regarding future events or performance. The forward-looking information contained in this press release is based on certain factors and assumptions concerning, among other things, the estimate of mineral resources and mineral reserves, the achievement of resource and reserve estimates, expectations and the anticipated impact of the COVID-19 epidemic, copper and other metal prices, the timing and amount of future development spending, the estimate of initial and sustaining capital requirements, the estimate of labor costs work and operation (including the price of the acid), the availability of labor, materials and acid supply, the receipt of and compliance with the necessary regulatory authorizations and approvals, estimating insurance coverage and assumptions regarding currency fluctuations, environmental risks, securities litigation or claims, and other similar matters. Although the Company considers these assumptions to be reasonable on the basis of the information currently available to it, they may prove to be inaccurate.

Forward-looking information involves known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from the future results, performance or achievements expressed or implied by the companies. forward-looking information. These factors include the risks inherent in the construction and operation of mineral deposits, including the risks associated with changes in project parameters as plans continue to be redefined, including the possibility that mining operations may not be completed. maintained at the Gunnison copper project or at the Johnson Camp mine, risks associated with variations in mineral resources and reserves, grade or recovery rates, risks associated with the ability to access infrastructure, risks associated with variations prices of copper and other raw materials and global demand and supply for copper and related products, risks related to increased competition in the market for copper and related products, risks related to financial conditions global financial conditions, the risks associated with the current global financial conditions and the impact of COVID-19 on the Company’s business, the uncertainties inherent in the ” estimate of mineral resources, access and supply risks, risks associated with the ability to access acid supply on commercially reasonable terms, dependence on key personnel, operational risks inherent in the conduct of mining activities, including the risk of accidents, labor disputes, increased investment and operating costs and the risk of delays or increased costs that may be encountered during construction or the mining process, regulatory risks including the risk that permits may not be obtained on time or not at all, financing, capitalization and liquidity risks, risks related to disputes over property titles and interests , the environmental risks and the additional risks identified in the “Risk factors” section of the reports and documents filed by the Company with the organizations My Canadian Securities Regulators.

Although the Company has attempted to identify material factors which could cause actual actions, events or results to differ materially from those described in forward-looking information, there may be other factors which may cause actual actions, events or results to differ materially from those described in the forward-looking information, there may be other factors which may cause actions, events or results are not as expected, estimated or expected. Therefore, readers should not place undue reliance on forward-looking information. Forward-looking information is made as of the date of this press release. Except as required by applicable securities laws, the Company assumes no obligation to publicly update or revise any forward-looking information.

SOURCE Excelsior Mining Corp.

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