TORONTO, ON–(Marketwired – March 24, 2017) – Primero Mining Corp. (“Primero” or the “Company”) (TSX: P) (NYSE: PPP) announces that it has agreed in principle with its lenders to an extension of its $75 million revolving credit facility (“RCF”) previously maturing in May 2017. Upon completion of an amending agreement, the maturity of the RCF will be extended by six months to November 2017, providing the Company with greater flexibility to replace the RCF with a longer-dated term loan.
The Company’s RCF currently has $50 million drawn with $25 million available. The proposed amended credit agreement would exclude financial covenants in the amended RCF during this six month period to support the San Dimas restart plan. Silver Wheaton will guarantee amounts payable under the RCF to ensure the Company’s ability to meet its financial obligations and return the San Dimas mine to profitability. Primero expects the documentation formalizing this extension and the guarantee will be completed early next week.