Discovery Silver secures US$250 million revolving credit facility

Discovery Silver Corp. (TSX: DSV, OTCQX: DSVSF) announced it has entered into an agreement for a US$250 million revolving credit facility with a syndicate of financial institutions. The facility includes an accordion feature allowing for an additional US$100 million subject to additional lender commitments and certain conditions.

The syndicate includes Bank of Montreal as administrative agent and lender, BMO Capital Markets as sole bookrunner and co-lead arranger, and Canadian Imperial Bank of Commerce and National Bank of Canada as co-lead arrangers, co-syndication agents and lenders.

The facility will mature on September 15, 2028, and will be available for general corporate and working capital purposes, including financing future investments. The facility is secured by all assets of the company and its material subsidiaries.

Interest rates vary based on loan type and the company's consolidated net leverage ratio. Term SOFR loans carry rates of Term SOFR plus 0.10% plus an applicable margin ranging from 2.50% to 3.50% per annum. US dollar base rate loans carry BMO's US dollar base rate plus margins ranging from 1.50% to 2.50% per annum. The undrawn portion is subject to standby fees ranging from 0.563% to 0.788% per annum.

Following the agreement, Discovery will terminate its existing US$100 million senior debt facility with Franco-Nevada GLW Holdings Corp., which was entered into on April 15, 2025, and remained undrawn.

Discovery operates the Cordero silver project in Mexico and completed the acquisition of the Porcupine Complex gold operations in Ontario in April 2025.

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