AMRQF

Amaroq Doubles Revolving Credit Facility to US$70 Million

Amaroq Upsizes Credit Facility, Enhances Financial Position

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  <section data-block="information">
    <h3>Information</h3>
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  <section data-block="ai-summary-paragraph">
    <h3>AI Summary</h3>
    <p>Amaroq Ltd. has announced the upsizing of its revolving credit facility to $70 million, significantly enhancing its financial flexibility and lowering funding costs. This development supports ongoing production growth at the Nalunaq gold mine and allows for accelerated exploration efforts, positioning the company for potential operational expansion.</p>
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  <section data-block="ai-summary-bullets">
    <h3>Key Points</h3>
    <ul><li>Amaroq doubles revolving credit facility to $70 million, enhancing financial flexibility.</li><li>New facility replaces existing $35 million, reducing overall funding costs.</li><li>Partnership with Gunvor Group supports gold production growth at Nalunaq mine.</li><li>Facility maturity extended to May 2028, indicating long-term capital support.</li><li>CFO highlights impact on working capital and expedition of exploration season.</li></ul>
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  <section data-block="companies-mentioned">
    <h3>Companies Mentioned</h3>
    <ul><li><strong>Landsbankinn (N/A)</strong>: Landsbankinn has supported Amaroq’s project from early stages.</li><li><strong>Gunvor Group (N/A)</strong>: Gunvor&#039;s partnership indicates confidence in Amaroq&#039;s gold production growth.</li></ul>
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  <section data-block="category">
    <h3>Corporate Developments</h3>
    <p>The news falls under &#039;Corporate Developments&#039; as it involves a significant financial restructuring that impacts operational capabilities. This is crucial for Amaroq as they prepare for increased production and expansion efforts in the mineral sector.</p>
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  <section data-block="market-moving">
    <h3>Market-Moving</h3>
    <ul><li>Upsized $70 million facility strengthens working capital and liquidity.</li><li>Reduced funding costs will enhance profit margins and cash flow.</li><li>Partnership with Gunvor signals strong market confidence in production growth.</li><li>Extended maturity provides stability through upcoming exploration efforts.</li></ul>
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  <section data-block="key-facts">
    <h3>Key Facts</h3>
    <ul><li>New RCF capacity: $70 million, doubling from $35 million.</li><li>Interest margin: starting at 7.50% over SOFR.</li><li>EBITDA-based margin discounts could lower costs as profits grow.</li><li>Facility matures on May 1, 2028.</li><li>Origination fee: 0.55% of commitments (approx. $385,000).</li></ul>
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  <section data-block="trading-thesis">
    <h3>Trading Thesis</h3>
    <p>Amaroq Ltd. (AMRQF) is positioned for growth; consider a bullish outlook for the short term.</p>
  </section>
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<article>
    <h2>Amaroq Ltd. Doubles Revolving Credit Facility to US$70 Million</h2>
    <p><strong>Reykjavík, April 30, 2026</strong> – <a href="https://www.benzinga.com/quote/AMRQF"><strong>Amaroq Ltd.</strong></a> (OTCQX: AMRQF), an independent mine development corporation committed to unlocking Greenland's mineral potential, has announced the upsizing of its Revolving Credit Facility ("RCF"). The newly amended agreement, established with <strong>Landsbankinn</strong> and <strong>Gunvor Group</strong>, raises the total capacity to <strong>US$70 million</strong>, effectively replacing the previous <strong>US$35 million</strong> facility while also reducing funding costs.</p>
    
    <h3>Key Features of the Updated Revolving Credit Facility</h3>
    <ul>
        <li>The RCF has doubled the previous limit, enhancing financial flexibility and extending its maturity date.</li>
        <li>Interest rates will be based on Term SOFR plus a margin, starting at <strong>7.50%</strong>.</li>
        <ul>
            <li><strong>6.25%</strong> when Last Twelve Months (LTM) EBITDA exceeds CAD 25 million.</li>
            <li><strong>5.00%</strong> when LTM EBITDA exceeds CAD 50 million.</li>
            <li><strong>4.50%</strong> when LTM EBITDA exceeds CAD 70 million.</li>
        </ul>
        <li>The facility is set to mature on <strong>May 1, 2028</strong>.</li>
    </ul>

    <p>The updated RCF incurs an origination and amendment fee of <strong>0.55%</strong> on total commitments, amounting to <strong>US$385,000</strong>. It remains secured by various assets, including property and operational equipment mortgages, share pledges over subsidiaries, and a license transfer agreement. Funds from the RCF may be drawn upon during the availability period, pending customary conditions and compliance with financial covenants.</p>

    <h3>Comments from Company Executives</h3>
    <p><strong>Ellert Arnarson</strong>, Amaroq CFO, stated, "<em>We are very pleased to have executed this agreement with Landsbankinn and Gunvor. Doubling the size of our revolving credit facility to $70 million not only enhances our funding capacity but also lowers our funding costs and extends maturity to May 2028. This materially strengthens our working capital as we enter this year’s exploration season and complete the construction of Phase 2 of the Nalunaq processing plant.</em>"</p>

    <p><strong>Morgan Holmes</strong>, Gunvor Metals Originator, also expressed satisfaction, "<em>Gunvor is delighted to partner with Amaroq. Supporting production growth and precious metal flows from the Nalunaq Mine aligns with our investment strategy and we look forward to supporting the Company's broader expansion plans.</em>"</p>

    <p><strong>Árni Þór Þorbjörnsson</strong>, Managing Director of Corporate Banking at Landsbankinn, noted, "<em>The upsizing of the facility reflects the milestones Amaroq has achieved and highlights the opportunities ahead. We are excited about our continued partnership as the project advances into its next phase.</em>"</p>

    <h3>About Amaroq Ltd.</h3>
    <p>Amaroq invests in the identification, acquisition, exploration, and development of gold and strategic metal properties situated in South Greenland. The Company holds a 100% interest in the Nalunaq Gold mine and possesses a diversified portfolio in Southern Greenland that includes key gold belts and exploration projects targeting minerals such as copper, nickel, and rare earths.</p>
    
    <h3>Contact Information</h3>
    <p>For further inquiries, please contact:</p>
    <ul>
        <li><strong>Ed Westropp</strong>, Chief Corporate Development and Strategy Officer<br></li>
        <li><strong>Phone:</strong> +44 (0)7385 755711</li>
        <li><strong>Email:</strong> ewe@amaroqminerals.com</li>
    </ul>

    <p>For more information about Amaroq and its projects, please visit their official website.</p>
</article>

Amaroq Ltd. has announced the upsizing of its revolving credit facility to $70 million, significantly enhancing its financial flexibility and lowering funding costs. This development supports ongoing production growth at the Nalunaq gold mine and allows for accelerated exploration efforts, positioning the company for potential operational expansion.

Amaroq Doubles Revolving Credit Facility to US$70 Million

AI Summary

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Trading Thesis

Market-Moving

Key Facts

Companies Mentioned

Corporate Developments

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