Gatos Silver, Inc. entered into a Revolving Credit Facility with Bank of Montreal, Chicago Branch. The Credit Agreement provides for a revolving line of credit in a principal amount of $50.0 million. The Credit Agreement matures on July 31, 2024 and has an accordion feature which allows for an increase in the total line of credit up to $100.0 million, subject to certain conditions, including the availability of lender commitments. Advances under the line of credit bear interest at a variable index-based rate per year determined by the applicable index together with a pricing grid based on the Company’s total debt to earnings before interest, taxes, depreciation and amortization (EBITDA) ratio, each as determined in accordance with the Credit Agreement (the “Leverage Ratio”). The Credit Agreement contains affirmative and negative covenants that are customary for credit agreements of this nature. The affirmative covenants require the Company to comply, at all times, with, among other things, a Leverage Ratio not greater than 3.00 to 1.00 with EBITDA calculated upon a trailing four fiscal quarter period, a liquidity covenant not less than $20.0 million and an interest coverage ratio not less than 4.00 to 1.00 calculated upon a trailing four fiscal quarter period. The negative covenants include, among other things, limitations on asset sales, mergers, acquisitions, indebtedness, liens, dividends and distributions, investments and transactions with affiliates. The Credit Agreement also includes customary events of default that include, among other things, defaults for non-payment, inaccuracy of representations and warranties, covenant breaches, defaults under other material indebtedness and material agreements, bankruptcy and insolvency, entry of material judgments, disruption in or abandonment of operations, loss of certain licenses and a change of control. Following the occurrence of an event of default, the lenders under the Credit Agreement can terminate the commitments under the Credit Agreement and demand the immediate repayment in full of all amounts due thereunder.