Shares in Golden Arrow Resources Corp (CVE:GRG) ticked higher Thursday as it revealed it had secured a credit line for up to US$10mln from SSR Mining Inc.
The funding is purely for meeting Golden Arrow's funding requirements for its Puna operations joint venture in Jujuy, Argentina. Puna Operations Inc is the joint venture, which was formed to combine Golden Arrow's Chinchillas project with SSR's producing Pirquitas operation.
First ore delivery to Pirquitas mill has been earmarked for the second half of 2018. Puna will produce lead, silver and zinc concentrates, eventually reaching planned life of mine annual average production of 8.4mln ounces of silver equivalent.
The non-revolving loan matures on the date which is the earlier of - 24 months after first delivery of ore to the Pirquitas mill or December 31, 2020.
The loan will bear interest at a rate per year equal to the US base rate plus 10%.
"We are very grateful to SSR Mining for granting a line of credit for up to $10-million (U.S.), which is strictly confined to meeting Golden Arrow's funding requirements for the Puna Operations joint venture in Jujuy," said Joseph Grosso, president and chief executive at Golden Arrow.
"With the project continuing to progress on budget, we expect this funding to ensure the Chinchillas integration with the Pirquitas mill while minimizing dilution to Golden Arrow's shareholders."
Golden Arrow shares gained 4.26% in Toronto to C$0.49 each.