NEWS RELEASE
PRIMERO MINING CORP.
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TORONTO - 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.
Primero is pleased to have received the support from its lenders and Silver Wheaton in extending the RCF.
Primero continues to work on other options to replace the RCF and the Silver Wheaton guarantee with a longer-dated term loan, which include ongoing discussions with Sprott Resource Lending Partnership regarding the potential financing announced on Feb. 27, 2017.
(Please note that all dollar amounts in this news release are expressed in U.S. dollars unless otherwise indicated.)
About Primero
Primero Mining Corp. is a Canadian-based precious metals producer that owns 100% of the San Dimas gold-silver mine and the Cerro del Gallo gold-silver-copper development project in Mexico and 100 per cent of the Black Fox mine and adjoining properties in the Township of Black River‐Matheson near Timmins, Ontario, Canada.
Primero offers immediate exposure to un-hedged, below average cash cost gold production with a substantial resource base in politically stable jurisdictions. The Company is focused on becoming a leading intermediate gold producer by building a portfolio of high quality, low cost precious metals assets in the Americas.
Primero's website is www.primeromining.com.
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