According to monitordaily.com, Talisker Resources’ wholly-owned subsidiary, Bralorne Gold Mines, has entered into a loan agreement with Two Shores Capital (2Shores) for a delayed-draw term loan of up to $11 million. The financing will fund the purchase of ore sorting and processing equipment for the Bralorne Gold Project in southern British Columbia.
Facility Details
The facility is structured to align with the project’s equipment purchase timeline rather than being disbursed all at once. It consists of an initial advance of $2.4 million, followed by subsequent advances totaling up to $8.6 million, released in tranches as equipment purchase milestones are reached. The initial advance will reimburse deposits Bralorne had already paid to equipment vendors, while the later advances will cover the remaining equipment purchases.
The loan runs for 36 months from closing, with blended monthly payments of principal and interest that fully amortize the facility over its term. It carries an interest rate of 14% per annum on amounts drawn, along with a 1% closing fee on each advance, which is withheld from that advance’s proceeds. Bralorne can prepay the facility in whole or in part at any time with seven business days’ notice, though 2Shores is entitled to a minimum 1.10x multiple on its invested capital.
Security Structure
The facility is secured by a first-priority purchase money security interest limited to the equipment itself and related insurance proceeds. It’s further backed by a performance bond of up to $5 million from a Canadian surety, along with a guarantee from Talisker. Notably, the facility places no charge on the Bralorne Gold Project’s mineral claims or other project assets, leaving the company’s core mining tenure unencumbered. The agreement includes standard covenants, representations, events of default, and funding conditions typical for this kind of facility.
Company Perspective
Terry Harbort, president and CEO of Talisker, said the facility delivers non-dilutive capital for the ore-sorting and processing equipment central to the company’s processing strategy at Bralorne. He added that structuring the financing against the equipment — without encumbering the company’s mineral tenure — helps preserve balance sheet strength as Talisker works toward a preliminary economic assessment later this year.