Cat Financial Provides $5MM to Mining Company
Published July 31, 2012
Categories: Industry News
Comstock Mining announced that it has developed new strategic alliances with two financing partners. The Company arranged a loan commitment up to $5 million, subject to certain conditions with Caterpillar Financial Services and a $5 million secured revolving credit facility with Resource Income Fund, with Auramet Trading acting as gold agent.
The Cat equipment facility is a 30-month term loan of $5 million. The company will use the proceeds to finance its Cat mobile equipment fleet, crushing facility and Merrill Crowe facility. The company closed on the first $2 million tranche of this financing on July 30, 2012.
The company said it may borrow up to $5 million at any one time under the revolving credit facility. On July 30, 2012, the company drew down $5 million. Each of the company and Comstock Mining agreed to secure the company’s obligations under this facility.
Virginia City, NV-based Comstock Mining is a gold and silver mining company with extensive, contiguous property in the Comstock District.