VANCOUVER, BC, Oct. 4, 2021 /CNW/ – Mako Mining Corp. (TSXV: MKO) (OTCQX: MAKOF) (“Mako” or the “Company“) is pleased to announce that Wexford Catalyst Trading Limited, Wexford Spectrum Trading Limited and Debello Trading Limited (collectively, the “Lenders“) and Wexford Capital LP, as agent on behalf of the Lenders (the “Agent“) have agreed to an extension of the current maturity date of the unsecured term loan in the amount of US$15,150,000 (the “Wexford Loan“), of which US$12,865,000 of principal remains outstanding. This extension, from August 20, 2022 to February 21, 2023, was made pursuant to the terms of the loan agreement dated as of February 20, 2020, as among Mako, as borrower, the Lenders and the Agent. The Wexford Loan is fully drawn and may be prepaid at any time, in whole or in part, at par plus accrued but unpaid interest, without penalty or premium and currently bears interest at a rate of 10% per annum, payable semi-annually on June 30th and December 31st each year. No fees, or other compensation, was provided to the Lenders for this six-month extension.
Akiba Leisman, Chief Executive Officer of Mako states that, “Wexford has been an extremely supportive shareholder since Mako was created and has provided the majority of the equity and debt used to construct and commission the San Albino gold mine. Since declaring commercial production at San Albino on July 1st, the Company has been rapidly reducing liabilities, including the reduction in principal of approximately US$2.3 million on the Wexford Loan. Debt repayment continues to be a top priority, but the recent decline in Mako’s share price has accelerated plans for a return of capital to shareholders, as the share price is at levels that we believe do not reflect the value of the business. The extension of the Wexford Loan by six months provides maximum flexibility to pursue this. The Company intends to announce specific plans for the return of capital to shareholders shortly.”
On behalf of the Board,
Chief Executive Officer
Mako Mining Corp. is a publicly listed gold mining, development and exploration company. The Company operates the high-grade San Albino gold mine in Nueva Segovia, Nicaragua, which ranks as one of the highest-grade open pit gold mines globally. Mako’s primary objective is to operate San Albino profitably and fund exploration of prospective targets on its district-scale land package.
Some of the 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, “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, and includes, without limitation, the Company’s intention to announce specific plans for a return of capital to shareholders shortly, and that Mako will meet its objective to operate San Albino profitably and fund exploration of prospective targets on its district-scale land package. 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, unanticipated costs; cash flow generation being weaker than expected inhibiting the Company’s ability to repay its debts; share price fluctuations; 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 current status of the Wexford Loan, 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.