REVOLVING CREDIT LINE FACILITY

6 Months Ended

Jun. 30, 2022

CONVERTIBLE PROMISSORY NOTES

Revolving Credit Line Facility

NOTE 14 - REVOLVING CREDIT LINE FACILITY

On February 4, 2021, the Company (through DynaMineras) entered into a Revolving Credit Line Facility and Commercial Offtake Agreement (the “RCL”), with a commercial buyer. Under the terms of the RCL:

· The Company will deliver 100% of its produced concentrates to the buyer and provider of the RCL, through December 31, 2022; unless extended by the Company;

· An initial RCL was established by buyer in the amount of $3.75M USD;

· On May 1, 2021, the RCL increased to an amount equal to 80% of the prior 3 months’ revenue;

· Each successive month, the RCL shall be adjusted according to the Company’s prior 3 months’ revenue;

· The RCL shall never be less than $3.75M USD;

· The RCL will be interest free for 45 days;

· The RCL is to be repaid through deliveries of concentrates or cash within 120 days;

The RCL is included under Customer Advances on the unaudited consolidated balance sheet.

Deposits under Revolving Credit Line Facility

Under the terms of the RCL, DynaMineras received the following advances from the buyer:

(1)	$2.5M advance on February 4, 2021. Settled on March 26, 2021
(2)	$3.75M advance on March 30, 2021. Settled on May 12, 2021
(3)	$3.75M advance on May 12, 2021. Settled on June 16, 2021
(4)	$6.75M advance on June 18, 2021. Settled on August 5, 2021
(5)	$8.25M advance on August 9, 2021. Settled on September 27, 2021
(6)	$8.25M advance on September 29, 2021. Settled on November 17, 2021
(7)	$8.25M advance on November 19, 2021. Settled on December 20, 2021
(8)	$9.25M advance on December 30, 2021. Settled on February 25, 2022
(9)	$8.175M advance on February 25, 2022. Settled on March 30, 2022
(10)	$7.875M advance on March 30, 2022.  Settled on May 13, 2022
(11)		$8.875M advance on May 19, 2022.  Settled on June 27, 2022
(12)		$8.75M advance on June 28, 2022