REG - Ecora Resources PLC - Extension of US$150m Revolving Credit Facility

Ecora ResourcesAnnouncement

31/01/2024 07:00

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RNS Number : 4299B  Ecora Resources PLC  31 January 2024

 

 

31 January 2024

 

Ecora Resources PLC

("Ecora")

 

Extension of US$150m Revolving Credit Facility

 

Ecora Resources PLC (LSE/TSX: ECOR) announces that it has entered into an
amendment and extension of its $150 million revolving credit facility
agreement with its existing syndicate of Scotiabank, CIBC and RBC. The
agreement also includes an uncommitted accordion feature of up $75 million to
be used to fund royalty acquisitions which, if implemented, would take the
potential borrowing capacity up to $225 million.

 

The facility has a maturity date of January 2027 with the potential to extend
the tenor twice by up to 12 months on each occasion, is largely on the same
terms as the previous facility and will be subject to SOFR plus a ratchet
between 2.25% and 4.00%, depending on leverage levels.

 

Commenting on the refinancing, CFO, Kevin Flynn said:

 

"The continued and enhanced support from our lenders is a strong endorsement
of our business and strategy. We have a clear growth strategy and this new
facility provides us with additional capacity to continue to build what is the
leading portfolio of royalties over commodities essential to a more
sustainable future. We are, as always, grateful for the support of our
syndicate and look forward to continuing to partner with them as we grow our
business."

 

 

 

For further information

 

 Ecora Resources PLC                        +44 (0) 20 3435 7400
 Geoff Callow - Head of Investor Relations

 Website:                                   www.e (http://www.ecora-resources.com) cora-resources.
                                            (http://www.ecora-resources.com) com (http://www.ecora-resources.com)

 Camarco                                    +44 (0) 20 3757 4997

 Gordon Poole / Owen Roberts / Elfie Kent

 

About Ecora Resources

 

Ecora Resources is a leading royalty company focused on supporting the supply
of commodities essential to creating a sustainable future.

 

Our vision is to be globally recognised as the royalty company of choice
synonymous with commodities that support a sustainable future by continuing to
grow and diversify our royalty portfolio in line with our strategy. We will
achieve this through building a diversified portfolio of scale over high
quality assets that drives low volatility earnings growth and shareholder
returns.

 

The mining sector has an essential role to play in the energy transition, with
commodities such as copper, nickel and cobalt - key materials for
manufacturing batteries and electric vehicles. Copper also plays a critical
role in our electricity grids. All these commodities are mined and there are
not enough mines in operation today to supply the volume required to achieve
the energy transition.

 

Our strategy is to acquire royalties and streams over low-cost operations and
projects with strong management teams, in well-established mining
jurisdictions. Our portfolio has been reweighted to provide material exposure
to this commodity basket and we have successfully transitioned from a coal
orientated royalty business in 2014 to one that by 2026 will be materially
coal-free and comprised of over 90% exposure to commodities that support a
sustainable future. The fundamental demand outlook for these commodities over
the next decade is very strong, which should significantly increase the value
of our royalty portfolio.

 

Ecora's shares are listed on the London and Toronto Stock Exchanges (ECOR) and
trade on the OTCQX Best Market (OTCQX: ECRAF).

 

 

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