Great Panther Mining Ltd. (GPR:TSX; GPL:NYSE.American) announced in a news release that its subsidiary, Minera Mexicana el Rosario, S.A., entered into a $10 million concentrate prepayment agreement with IXM Group, a Geneva-based physical metals trader.
IXM was set to advance Great Panther's subsidiary, Minera Mexicana, which operates the company's Mexican mining operations, this $10 million amount on Dec. 30, 2019. The prepayment is in consideration of an offtake agreement at market-based commercial terms for 100% of the gold and silver concentrates produced from the Guanajuato mine complex in Mexico in 2020 and 2021.
Great Panther provided IXM with a guarantee regarding the prepayment. No hedging of the gold or silver prices associated with the offtake or prepayment agreement can be done. The prepayment will bear interest at an annual rate of three-month U.S. LIBOR plus 5%.
"We are pleased to be partnering with IXM in Mexico for our GMC concentrates over the next two years," stated Jeffrey Mason, interim president and CEO. "Securing the sale of this off-take at competitive market terms, while strengthening our balance sheet with US$10 million at an attractive cost of capital, positions us well to achieve our strategic objectives as we move into 2020."
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