DEBT

3 Months Ended

Mar. 31, 2020

DEBT

DEBT

NOTE 10 DEBT

On August 10, 2018, the Company finalized a $50.0 million senior secured three year term loan facility with Royal Capital Management Corp., an administrative agent, and the lenders party thereto (“Lenders”).  An affiliate of Robert McEwen, Chairman and Chief Executive Officer and the beneficial owner of 20% of the Company’s current outstanding common stock, contributed $25.0 million of the $50.0 million total term loan.  

The loan bears interest at 9.75% per annum with interest due monthly and is secured by a lien on certain of the Company’s and its subsidiaries’ assets.  Scheduled payments on the loan are as follows: $2.0 million monthly payments starting in August 2020 for 12 months and a final $26.0 million payment on August 10, 2021.

A reconciliation of the Company’s long-term debt for the three months ended March 31, 2020 and for the year ended December 31, 2019 is as follows:

	Three months ending March 31, 2020		Year ending December 31, 2019
Balance, beginning of period		49,516		49,206
Interest expense		1,297		5,185
Interest payments		(1,215)		(4,875)
Balance, end of period	$	49,598	$	49,516
Less current portion		16,000		10,000
Long-term portion	$	33,598	$	39,516

During the three months ended March 31, 2020; $nil (March 31, 2019 – $0.6 million) of interest was capitalized in plant and equipment as construction costs for the Gold Bar mine. The scheduled remaining minimum interest payments are $3.5 million in 2020 and $2.0 million in 2021.