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Silver Standard Closes New $75M Revolving Credit Facility

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Silver Standard Resources Inc.SSRI recently announced the closing of a new $75 million senior secured revolving credit facility. The amounts that have been borrowed under the credit facility will incur variable interest at London Interbank Offered Rate plus an applicable margin ranging from 2.75% to 3.75%. This interest rate has been determined based on the company's net leverage ratio.

The tenure of the credit facility is three years. All the liabilities and assets under the facility are guaranteed by Silver Standard's material subsidiaries as well as assets. The credit facility may be utilized by the company for reclamation bonding, working capital and other general corporate purposes.

The credit facility adds to the company's healthy balance sheet and provides flexibility for future growth. The Canadian Imperial Bank of Commerce acted as the sole lead arranger, sole bookrunner and administrative agent for the credit facility.

The company's share price fell 4.8% to close at $5.32 last Wednesday.

Recently, Silver Standard inked a deal with Newmont Mining Corporation NEM to buy 2,844 hectares contiguous with the Marigold mine in Nevada (the "Valmy Property") for $11.5 million in cash. The purchase consideration will be financed from cash on hand.

Per the agreement, Silver Standard will acquire 100% of Newmont's interest in a prospective land package contiguous with the Marigold mine with 196,000 ounces of historical gold production. The Valmy Property is a 2,844 hectare land package surrounding parts of the Marigold mine to the east, south and west.

Silver Standard currently carries a Zacks Rank #5 (Strong Sell).

Some better-ranked silver mining companies are Silvercrest Mines Inc. SVLC and Avino Silver & Gold Mines Ltd. ASM . While Silvercrest Mines sports a Zacks Rank #1 (Strong Buy), Avino Silver & Gold Mines carries a Zacks Rank #2 (Buy).

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NEWMONT MINING (NEM): Free Stock Analysis Report

SILVER STD RES (SSRI): Free Stock Analysis Report

SILVERCREST MIN (SVLC): Free Stock Analysis Report

AVINO SILVER&GD (ASM): Free Stock Analysis Report

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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