09:03 AM EDT, 06/04/2024 (MT Newswires) -- Sierra Metals ( SMTSF ) , which rose 4.4% yesterday, said on Tuesday that that it sealed an agreement for a US$95 million ($129.9 million) loan to repay existing debt and to have funds for on-going projects.

The new loan will be used to repay an existing US$75 million loan, with the additional US$20 million earmarked for high-return capital projects and transaction fees and expenses.

Capital expenditures include the development below the 1120 level and the completion of the shaft at the Yauricocha mine in Peru, as well as for mine developments of more than 8,000 meters, a new ore pass, and the initial engineering works on a new tailings dam facility at the Bolivar mine in Mexico.

The new facility has a five-year term with maturity in June 2029. The facility bears interest at a three-month SOFR plus 6.50% for US$85 million and a 12% fixed rate for US$10 million.