Alkane Resources secures A$110 million revolving credit facility
Alkane Resources Limited (ALK, TSX: ALK, OTCQX: ALKRY) has executed an A$110 million revolving credit facility and A$40 million contingent instrument facility with four major Australian banks.
The Perth-based gold and antimony producer established the syndicated facilities agreement with Australia and New Zealand Banking Group Limited, Commonwealth Bank of Australia, Macquarie Bank Limited and Westpac Banking Corporation. The revolving credit facility may be used for general corporate purposes, while the contingent instrument facility will allow cash currently backing performance guarantees to be returned to operations.
The facility carries a three-year tenor with options to extend twice by one year each, subject to six-month notice and lender approval. Alkane is not required to enter mandatory gold hedging as a condition of the facility.
The arrangement follows Alkane’s early repayment of a $45 million project finance facility in August 2025. The company reported $232 million in cash and bullion at December 2025, which has grown during the March quarter.
"The new facilities allow us to broaden our relationships with tier-1 banks and provide additional liquidity to move quickly on emerging opportunities," said Managing Director and CEO Nic Earner. "Additionally, the contingent instrument facility will provide up to $40 million of cash returned to the business that is currently used for backing performance guarantees across the group’s operations."
The facility includes senior security over Australian assets of the borrower and guarantors, subject to certain exclusions. Financial covenants include interest cover ratio, net leverage ratio, minimum liquidity test, and guarantor coverage test requirements typical for such facilities.
Alkane operates three mines across Australia and Sweden: the Tomingley gold mine in New South Wales, the Costerfield gold and antimony operation in Victoria, and the Björkdal gold mine in Sweden. The company expects to provide a March 2026 quarter production update in coming weeks.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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