On May 29, Alexis Minerals announced they had received formal credit approval from Credit Suisse for a US $45 million, 4 ˝-year term loan to further the development of the Snow Lake mine.
Details about the loan will be released after agreements on debt financing have been reached, the company said in a news release. The cash will be used to restart the Snow Lake mine, for repayment of the company's current bridge loan and for general corporate expenses.
The company also made a couple of additional announcements. The first of which is a proposed 20:1 share consolidation up for debate at Alexis' upcoming annual and special meeting of shareholders to be held on June 13.
As well, another corporate development will be discussed at the mid-June meeting. Alexis will put forward a proposed name change to QMX Gold Corporation, which they explain reflects the transition to larger scale production.
"This is the moment that shareholders have been waiting for," said Francois Perron, Alexis president and chief executive officer, commenting on the financing and proposed changes. "I am extremely happy that we were able to come to an agreement with Credit Suisse on a financing arrangement that management and the board feel benefits the company and our shareholders. The project team at Snow Lake has continued to advance the project and our ability to attract a financing partner such as Credit Suisse demonstrates the robustness of the project.
“We will soon be ready to move forward on our project at Snow Lake, which is expected to transform the company. As part of this transformation, I am pleased to announce that we are proposing a share consolidation to establish a capital structure appropriate for a company that should reach a combined 100,000 ounces of annual production once the Snow Lake mine reaches commercial production. Finally, I am pleased to announce that we will be changing the name of the company to QMX Gold Corporation to reflect the evolution of the company as it moves forward with its existing mine in Quebec, its project in Manitoba as well as the continued exploration of these properties."