TSX-V: MKO; OTCQX: MAKOF
VANCOUVER, BC,
Feb. 22, 2021 /CNW/ - Mako Mining
Corp. (TSXV: MKO) (OTCQX: MAKOF) ("Mako" or the "Company")
is pleased to announce that further to its press release of
February 16, 2021, it has now entered
into the main credit facility with Nebari Natural Resources Credit
Fund I, LP ("Nebari") to provide financing of US$6.34 million (the "Principal Amount").
The Company proposes to use the funds to accelerate the ramp up
of mining operations at the San Albino gold project ("San Albino")
in northern Nicaragua, the
acceleration of the previously announced US$8.5 million 2021 exploration program (see
press release dated February 1,
2021), and for fees and expenses incurred in connection with
the Nebari financing.
The interest rate on the Principal Amount will be 8% with an
original issue discount of 5.3% and a maturity date of March 31, 2022. There will be no pre-payment
penalties and no hedging. Closing of the credit facility is
expected on or before February 28,
2021.
The Company intends to repay the previously announced bridge
loan from Nebari in full with the proceeds of the main credit
facility. The credit facility is secured by a pledge of
shares in favour of Nebari of the Company's Nicaraguan
subsidiaries, Gold Belt, S.A. and Nicoz Resources, S.A. It is
contemplated that the share pledges will be granted for the benefit
of both Nebari and Mako's existing lender and controlling
shareholder, Wexford Capital LP upon the closing on the main credit
facility.
On behalf of the Board,
Akiba Leisman
Chief Executive Officer
About Nebari
Nebari is a New York based
manager of privately offered pooled investment vehicles including
Nebari Natural Resources Credit Fund I, LP which is funding the
loan to Mako. The leadership team has deep experience with leading
global mining companies and financial institutions. Nebari is known
for partnering with motivated and capable management teams focused
on achieving clear plan targets.
About Mako
Mako Mining Corp. is a publicly listed gold mining, development
and exploration firm. The Company is developing its high-grade San
Albino gold project in Nueva
Segovia, Nicaragua. Mako's
primary objective is to bring San Albino into production quickly
and efficiently, while continuing exploration of prospective
targets in Nicaragua.
Forward-Looking Information: Certain statements
contained herein may be considered "forward-looking information"
within the meaning of applicable securities laws. Forward-looking
information can be identified by words such as, without limitation,
"propose ", "estimate", "project", "believe", "anticipate",
"intend", "expect", "plan", "predict", "may" or "should" or
variations thereon or comparable terminology. The forward-looking
information contained herein reflects the Company's current beliefs
and expectations, based on management's reasonable assumptions as
of the date hereof, and includes, without limitation, the Company's
expectation that it will successfully close on the Principal Amount
with Nebari by February 28, 2021, and
that the bridge loan will be repaid in full using the proceeds of
the credit facility without any interest penalty; that it will use
the funds to accelerate the ramp up of mining operations at San
Albino, to accelerate the 2021 exploration program and to pay fees
and expenses incurred in connection with the debt financing; and
that the Company will be able to bring San Albino into production
quickly and efficiently while continuing exploration of prospective
targets in Nicaragua. Such
forward-looking information is subject to a variety of risks and
uncertainties which could cause actual events or results to differ
materially from those reflected in the forward-looking information,
including, without limitation, the Company not being successful
closing on the Principal Amount by February
28, 2021, or at all, and that, as a result, the Company
potentially becomes subject to the payment of interest penalty and
required to repay the bridge loan without the expected additional
funding from Nebari; that the Company is not able to ramp up mining
operations at San Albino and accelerate its 2021 exploration
program as a result of lack of funding or other factors; and
changes in plans and parameters related to San Albino and the
Company's exploration prospectus in Nicaragua and other risks and uncertainties as
disclosed in the Company's public disclosure filings on SEDAR at
www.sedar.com. Such information contained herein represents
management's best judgment as of the date hereof, based on
information currently available and is included for the purposes of
providing investors with information regarding the Company's
current funding arrangements with Nebari, and may not be
appropriate for other purposes. Mako does not undertake to update
any forward-looking information, except in accordance with
applicable securities laws.
Neither the TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
SOURCE Mako Mining Corp.
