REVOLVING CREDIT LINE FACILITY

12 Months Ended

Dec. 31, 2022

CONVERTIBLE PROMISSORY NOTES

REVOLVING CREDIT LINE FACILITY

NOTE 15 – REVOLVING CREDIT LINE FACILITY

On February 4, 2021 Mineras de DynaResource SA de CV (“Seller”) entered into a Revolving Credit Line Facility and Commercial Offtake Agreement (the “RCL”), with a commercial buyer. The RCL was assigned from Mineras to DynaMexico in March 2022 and in December 2022 it was extended for one year. 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;

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

· Each successive month, the RCL shall be adjusted according to the company’s prior 3 month’s 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 consolidate balance sheet,

Deposits under Revolving Credit Line Facility

Under the terms of the RCL, Mineras de DynaResource received the following advances from the buyer:

(1)	$2.50M 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 30, 2021
(8)	$9.25 M 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, 2020. Settled on June 27, 2022
(12)	$8.75M advance on June 28, 2022. Settled on August 15, 2022
(13)	$7.80M advance on August 19, 2022. Settled on September 28, 2022
(14)	$7.7375M advance on September 29, 2022. Settled on November 15, 2022
(15)	$8.25M advance on November 14, 2022. Settled on December 28, 2022
(16)	$9.35 advance on December 28, 2022.