Fortuna announces amendment to increase credit facility to US$250 million
Fortuna announces amendment to increase credit facility
to US$250 million
Vancouver, December 15, 2022 – Fortuna Silver Mines Inc. (NYSE: FSM) (TSX: FVI) is pleased to announce
that it has amended its existing senior secured revolving credit facility with BNP Paribas, The Bank of Nova
Scotia, Société Générale and other financial institutions and lenders, to increase the maximum facility
amount by US$50 million to US$250 million. The maturity date of the credit facility remains unchanged
and matures in November 2025.
Key amendments to the credit facility include:
• Addition of an uncommitted US$50 million accordion option which can increase the aggregate
principal amount under the credit facility to US$300 million, exercisable on or after June 1, 2023
and before October 2024
• An increase in the step-down level of the facility from US$150 million to US$175 million in
November 2024
• Replacement of discontinued LIBOR based interest rates by Secured Overnight Financing Rate
(SOFR) based rates published by the Federal Reserve Bank of New York and the inclusion of market
standard benchmark interest rate replacement provisions
• 25 basis points i ncrease in the benchmark loan interest rate margins and 9 to 12 basis points
increase in the commitment fee rate; the actual margin and rate will be determined based on the
Company’s net senior secured leverage ratio
About Fortuna Silver Mines Inc.
Fortuna Silver Mines Inc. is a Canadian precious metals mining company with four operating mines in
Argentina, Burkina Faso, Mexico and Peru, and a fifth mine under construction in Côte d'Ivoire.
Sustainability is integral to all our operations and relationships. We produce gold and silver and generate
shared value over the long -term for our stakeholders through efficient production, environmen tal
protection, and social responsibility. For more information, please visit our website.
ON BEHALF OF THE BOARD
Jorge A. Ganoza
President, CEO, and Director
Fortuna Silver Mines Inc.
Investor Relations:
Carlos Baca | [email protected] | Twitter: @Fortuna_Silver | LinkedIn: fortunasilvermines
NYSE: FSM | TSX: FVI
www.fortunasilver.com NEWS RELEASE
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Forward looking Statements
This news release contains forward looking statements which constitute “forward looking information” within the meaning of
applicable Canadian securities legislation and “forward looking statements” within the meaning of the “safe harbor” provision s
of the Private Securities Litigation Reform Act of 1995 (collectively, “Forward looking Statements”). All statements included herein,
other than statements of historical fact, are Forward looking Statements and are subject to a variety of known and unknown risks
and uncertainties which could cause actual events or results to differ materially from those reflected in the Forward looking
Statements. The Forward looking Statements in this news release may include, without limitation, statements about the
Company's p lans for its mines and mineral properties; statements regarding the Company's liquidity, access to capital; the
expected use of the Company’s increased credit facility; the Company’s plans for the construction of an open pit gold mine at the
Séguéla gold Project, including the timeline for construction, the costs of constructing the mine, the securing of contracts necessary
for the construction of the mine, the timing of the delivery of equipment to the project; the signing of the Mining Convention with
the Government of Côte d’Ivoire, the ability to sign contracts for outstanding equipment and services in line with the estimates for
same, the timing of the first gold pour; the Company’s business strategy, plans and outlook; the merit of the Company’s miner al
properties; mineral resource and reserve estimates; timelines; the future financial or operating performance of the Company;
expenditures; approvals and other matters. Often, but not always, these Forward looking Statements can be identified by the use
of words such as “estimated”, “potential”, “open”, “future”, “assumed”, “projected”, “used”, “detailed”, “has been”, “gain”,
“planned”, “reflecting”, “will”, “containing”, “remaining”, “to be”, or statements that events, “could” or “should” occur or be
achieved and similar expressions, including negative variations
Forward looking Statements involve known and unknown risks, uncertainties and other factors which may cause the actual results,
performance or achievements of the Company to be materially different from any results, performance or achievements expressed
or implied by the Forward looking Statements. Such uncertainties and factors include, among others, changes in general economic
conditions and financial markets; changes in prices for silver, gold and other metals; changes in the prices of supplies required for
the construction at the Séguéla gold Project such as equipment and services; the ability to sign the Mining Convention on ter ms
currently contemplated and acceptable to the Company; technolo gical and operational hazards in Fortuna’s mining and mine
development activities; risks inherent in mineral exploration; fluctuations in prices for energy, labor, materials, supplies and
services; fluctuations in currencies; increases in inflation; higher operating costs uncertainties inherent in the estimation of mineral
reserves, mineral resources, and metal recoveries; our ability to obtain all necessary permits, licenses and regulatory approvals in
a timely manner; governmental and other approvals; pol itical unrest or instability in countries where Fortuna is active; labor
relations issues; as well as those factors discussed under “Risk Factors” in the Company's Annual Information Form. Although the
Company has attempted to identify important factors th at could cause actual actions, events or results to differ materially from
those described in Forward looking Statements, there may be other factors that cause actions, events or results to differ fro m
those anticipated, estimated or intended.
Forward looking Statements contained herein are based on the assumptions, beliefs, expectations and opinions of management,
including but not limited to that the construction at the Séguéla gold Project will continue on the time line and in accordance with
the budget as planned; that the current inflationary environment will not have an adverse effect on the cost of construction of
the mine at the Séguéla gold Project and will not adversely affect the supply chain and delivery of materials and equipment f or
the construction; expected trends in mineral prices and currency exchange rates; that there will be no adverse weather conditions
that will delay work at the project; that the Company’s activities will be in accordance with the Company’s public statements and
stated goals; that there will be no material adverse change affecting the Company or its properties; that all required approvals
will be obtained; that there will be no significant disruptions affecting operations, and such other assumptions as set out h erein.
Forward looking Statements are made as of the date hereof and the Company disclaims any obligation to update any Forward
looking Statements, whether as a result of new information, future events or results or otherwise, except as required by law. There
can be no assurance that Forward looking Statements will prove to be accurate, as actual results and future events could differ
materially from those anticipated in such statements. Accordingly, investors should not place undue reliance on Forward looki ng
Statements.