McEwen Mining (TSX: MUX; NYSE: MUX) has closed a US$50 million senior secured 3-year term loan first announced in late May, with the funds earmarked for completion of construction at the company's new Gold Bar gold mine in Nevada, and for general purposes.
Rob McEwen, McEwen Mining's chairman and self-described "chief owner" with 24% of the firm"s 337 million outstanding shares, is participating as lender for half of the US$50-million loan, which will have monthly interest at 9.75% per annum.
Repayment will occur in 12 equal monthly instalments of $2 million during the third year, with the remaining balance due on maturity. The loan can be retired in full or in part anytime during the first two years upon payment of the principal and accrued interest plus a fee linked to the remaining life of the term loan, and during the third year with certain conditions.
McEwen's principal assets consist of: the San Jose mine in Santa Cruz, Argentina (49% interest); the Black Fox mine in Timmins, Ontario; the El Gallo Fenix project in Mexico; the Gold Bar mine in Nevada, currently under construction; and the large Los Azules copper project in Argentina, advancing towards development.