September 22, 2021
Great Panther Mining Ltd. (TSX:GPR, BUY, C$1.65 target, Timothy Lee) announced it has entered into two new agreements for credit facilities with Samsung and Asahi. The deals include a $20M gold doré prepayment agreement with Asahi Refining Canada Ltd., a wholly-owned subsidiary of Asahi Holdings Inc. (TSE:2502, Not Rated), as well as a C$5M lead concentrate prepayment agreement with Samsung C&T U.K. Ltd., a wholly-owned subsidiary of Samsung C&T Corp. (KOSE:A028260, Not Rated). Under the Doré agreement, Asahi will advance the C$20M prepayment to GPR for the equivalent value in gold, to be delivered over 12 months in installments of equal value commencing in April 2022. Under the concentrate agreement, Samsung will advance a C$5M prepayment to GPR’s Mexican subsidiary, Minera Mexicana El Rosario S.A. de C.V. (“MMR”), for exclusive offtake of the lead concentrate production from the Topia mine, up to a maximum contract quantity of 5400 DMT representing ~21 months of production from the mine. This agreement also has an 18-month term and will be repaid in equal monthly installments commencing in April 2022. The credit facilities are expected to contribute an additional C$25M to the company’s working capital balance, providing it with the flexibility to execute on the objectives of replacing resources, extending mine life, and unlocking further exploration potential at the Tucano Gold Mine. In our view, Great Panther has a plethora of potential upside, especially with ongoing drilling at Tucano and Coricancha (Q4/21) and potential underground development news at Tucano (2022). Read more
