Author: Dorothy Kosich, Mineweb.net
Idaho-based silver miner Hecla Mining said Tuesday it has made a prepayment of $18.2 million to its $380 million term loan, bringing the total repaid on the loan to $341.7 million.
The credit facility was originally put in place to fund the 100% acquisition of the Greens Creek mine in Alaska in early 2008.
The prepayment reduces the lending syndicate to two institutions, reduces borrowing costs and provides Hecla with the flexibility to control its capital program, Hecla said in a news release.
In a statement, Hecla President and CEO Phil Baker said, "After the repayment, the cash on our balance sheet is similar to the amount we had at the beginning of the second quarter 2009 and I'm confident that this approach of reducing debt and investing in our projects is prudent and will create value for shareholders in the near term."
The amendment to the original credit agreement loosen the limit on capital expenditures and exploration spending to allow aggregate investments of $75 million through year-end and makes other modifications to the loan agreement.
Mineweb is a web-based international mining publication focusing on mining financial and corporate news and comment.www.proactiveinvestors.com
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