Benzinga | Jul 12, 2021 04:01PM EDT

Gatos Silver Signs Definitive Agreement to Retire Los Gatos Joint Venture Term Loan; Gatos Silver's Attributable Portion Of The Term Loan And Related Fees Is ~$154.8M

Gatos Silver, Inc. (NYSE:GATO) (TSX:GATO) ("Gatos Silver" or the "Company") is pleased to announce it has reached a definitive agreement with Dowa Metals & Mining Co., Ltd. ("Dowa") to retire the outstanding Los Gatos Joint Venture ("LGJV") Term Loan ("Term Loan"). Gatos Silver's attributable portion of the Term Loan and related fees is approximately $154.8 million. The Term Loan retirement is expected to close soon.

Stephen Orr, the Company's Chief Executive Officer, stated, "The successful completion of this definitive agreement is a significant value-catalyst and deleveraging event for the LGJV. This agreement also reaffirms our commitment to creating value for our Gatos Silver stakeholders while continuing to position Gatos Silver as the prominent "go-to" company for silver exposure. We are grateful for Dowa's ongoing support to the LGJV and look forward to continuing our accretive relationship."