The Silver Lake Resources Limited. (ASX: SLR) share price is in reverse on Monday morning. This comes despite the gold producer announcing an update on the acquisition of Harte Gold Corporations' credit facilities.
At the time of writing, Silver Lake's shares are down 4.02% to $1.79. Regardless of the drop today, its shares are still up close to 15% in the past month.
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What did Silver Lake update the ASX with?
Investors are sending the Silver Lake share price lower, following the company's completed transaction. Not helping is the broader S&P/ASX 200 Index (ASX: XJO), which has fallen 0.79% to 7,338 points.
In its release, Silver Lake advised it has secured the credit facilities provided by BNP Paribas (BNP) to Harte Gold.
Canadian-listed, Harte Gold is a mining company that owns and operates the Sugar Zone mine in Ontario, Canada. The site comes with an associated 81,287-hectare land package.
BNP is a French international banking group, the largest in Europe and seventh largest in the world by total assets.
Silver Lake acquired a $US41.3 million non-revolving term facility and a US$22 million revolving facility. Together, the US$63.3 million line of credit has an outstanding interest of $US2.3 million.
A forbearance agreement between Harte Gold and BNP was entered since 30 July 2021. The facilities are secured by a first lien on all the assets, property and undertaking of Harte Gold. The forbearance period is due to expire at the end of this month.
Harte Gold has committed various events of default under the credit agreement, including non-payment of certain principal and interest payments.
Silver Lake funded the transaction through the use of its existing cash reserves.
Silver Lake share price snapshot
Over the past 12 months, Silver Lake shares have fallen around 3% despite surging since late September. When looking at 2021 alone, its shares have flatlined for the period.
Silver Lake commands a market capitalisation of roughly $1.61 billion with approximately 885.40 million shares outstanding.
