Amaroq Ltd on Wednesday said it has secured improved terms on its debt financing package with Icelandic lender Landsbankinn, extending the facility’s maturity by 14 months and introducing lower interest margins linked to earnings performance.
The Greenland-focused mine developer said the amended agreement pushes the maturity date from December 2026 to February 2028 and creates the potential to reduce margins to as low as 4.5% plus the secured overnight financing rate, depending on last 12-month earnings before interest, tax, depreciation, and amortisation.
Amaroq has a $35.2 million revolving credit facility across three tranches.
Facilities A and B, totalling $28.7 million, are fully drawn with margins of 9.5% that will fall to 7.5% when facility C becomes available.
Facility C, a $6.5 million tranche, will open once the company records C$6 million in cumulative three-month Ebitda.
Under the revised deal, margins will step down further to 6.25%, 5.00% or 4.50% when LTM Ebitda surpasses C$25 million, C$50 million and C$70 million, respectively.
Amaroq shares were flat at 92.00 pence in London on Wednesday afternoon.
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