The 1% royalty was already in the financing - it's unchanged in this extension. Yes the effective rate is higher than 8%. It was an improvement on the prior in all cost though, as they've stepped down from 10% to 8% - that's a good outcome.
The benefit of this deal appears to be swapping 10% money on rehabilitation bonding to sub 5% with the new provider. Also the extended maturity means there is more time to find other lower cost opportunities should they arise. Flexibility = win win.
SMR Price at posting:
$1.45 Sentiment: Buy Disclosure: Held
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