In a move to enhance its financial flexibility, TMC the Metals Co Inc. (NASDAQ:TMC), a metal mining company, has amended its credit agreement with Argentum Credit Virtuti GCV, increasing the borrowing limit to $27.5 million. This amendment, effective Thursday, was disclosed in a recent SEC filing.
The Vancouver-based company, previously known as Sustainable Opportunities Acquisition Corp., entered into the Third Amendment to the Unsecured Credit Facility with Argentum Credit Virtuti GCV, associated with Allseas Group S.A.
The adjustment to the borrowing limit, which is set to revert to $25 million following certain financing events, is part of TMC's ongoing efforts to secure additional capital.
The credit facility is unsecured, providing TMC with additional resources to support its operations without the need for collateral. The terms of the amendment were outlined in the SEC filing but specific financial details were not disclosed.
TMC the Metals Co, listed on the Nasdaq Stock Market, operates in the metal mining sector under the organization name 01 Energy & Transportation. The company's common shares trade under the ticker TMC, and it also has redeemable warrants listed as TMCWW, with each whole warrant exercisable for one common share at a price of $11.50.
This strategic financial move comes as TMC continues to navigate the capital-intensive mining industry, where securing funding is crucial for exploration, development, and operational activities. The company's engagement with Argentum Credit Virtuti GCV reflects its broader efforts to strengthen its financial position and ensure continued growth.
In other recent news, The Metals Company has announced some key developments. The company confirmed plans to submit an application for an exploitation contract with the International Seabed Authority (ISA) by March 2025. This move comes amidst the company's effort to debunk false claims about "dark oxygen".
The Metals Company also reported an improved liquidity position, with $40 million in cash at the end of June, and further increases due to expanded borrowing limits and a raise through an ATM.
Despite a negative free cash flow in Q2 2024, the company maintains that its current financial resources will sufficiently support its operations over the next year.
CEO Gerard Barron emphasized the strategic importance of diversifying supply chains and aligning the mineral content of nodules with EV battery cathodes. Meanwhile, CFO Craig Shesky pointed out the company's progress, including two SEC-compliant resource statements and a successful pilot system test that lifted 3,000 wet tons of nodules.
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