Americas Silver enters into pre-payment facility and offtake agreements with Glencore
On January 30, 2017, Americas Silver Corporation ("Americas Silver") announced that it entered into a US$15 million concentrate pre-payment facility with Metagri S.A. de C.V., a subsidiary of Glencore PLC. The proceeds will be used to support the development costs for the San Rafael zinc-lead-silver project within the Cosalá district of Sinaloa, Mexico.
Under the terms of the facility, Glencore will provide Americas Silver with a four-year loan of up to US$15 million to be used for the development of the project and commercial production of its concentrates. Americas Silver also entered into four-year offtake agreements with Glencore for the zinc and lead concentrates produced from the project, under which Glencore will pay for the concentrates at prevailing market prices for silver, lead and zinc, less treatment and refining charges.
Americas Silver is a silver mining company focused on growth in precious metals from its existing asset base and execution of targeted accretive acquisitions. It owns and operates the Cosalá Operations in Sinaloa, Mexico and the Galena Complex in Idaho, USA.
Glencore is one of the world's largest global diversified natural resource companies and a major producer and marketer of more than 90 commodities.
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