- Gunnison Copper Corp (GCUMF, Financial) completes a Second Amended Credit Agreement with Nebari Natural Resources, modifying key financial terms.
- The new agreement includes a suspension of principal amortization until January 2026 and a potential US$6.25 million debt-to-equity conversion.
- Additional provisions include principal repayments from 48C tax credits, pending completion of certain conditions and approvals.
Gunnison Copper Corp (GCUMF) has successfully finalized a Second Amended and Restated Credit Agreement (Second ARCA) with Nebari Natural Resources Credit Fund I LP. This new agreement amends the initial ARCA dated December 22, 2021, introducing crucial changes to provide the company with greater financial flexibility and short-term debt relief.
Among the key changes, the agreement suspends principal amortization from February 1, 2025, to January 1, 2026. It also introduces a potential conversion of up to US$6.25 million of principal into equity at a conversion price of US$0.2097 per share.
The Second ARCA includes a mechanism allowing for partial repayment of the principal through proceeds from the sale of 48C tax credits and the possibility of extending the maturity date via refinancing avenues. These provisions aim to improve Gunnison's financial standing and operational capacity.
Several conditions were necessary for the amendments' effectiveness, including approvals from the Toronto Stock Exchange, as well as Greenstone Resources L.P. and Triple Flag. Furthermore, deferral of interest payments on convertible debentures and the launch of a Gunnison Project optimization work program were imperative. All required conditions have now been met.
This agreement marks a significant step in Gunnison Copper's strategic financial restructuring, potentially aiding in the company's long-term growth and stability within the competitive copper market. Investors and stakeholders can expect enhanced operational and financial efficiencies from this binding financial transformation.
