Karora Resources Inc. announced it has agreed to refinance its current credit facility with a lower-cost senior secured $80 million Credit Agreement with Macquarie Bank Limited (Macquarie). The Credit Agreement provides for a $40 Million term loan and a $40 million revolving credit facility, both bearing an interest rate of Canadian Dealer Offered Rate +4.5% per annum on the drawn principal and standby fee of 1.5% per annum on the undrawn revolving credit facility. The term of the Credit Agreement is 24 months with an option for annual renewal thereafter.

The proceeds of Credit Agreement will be used to refinance the Corporation's existing $30 million credit facility which bears an interest rate of TD prime rate plus 6.05% per annum, and for general working capital purposes. Closing of the Credit Agreement is subject to conditions precedent, including payment of customary upfront fees that are typical for a financing of this nature. Karora expects closing to occur during June 2022.