Mazuma Completes $6.8M in Underground Mining Equipment

Mazuma Capital, a leading middle-market national direct lender, announced today it has completed a $6.8 million lease facility for one of the oldest precious metals mining companies in the country. This low-cost production leader is highly successful in speculative exploration in the U.S. and internationally.

Lease proceeds will be used for underground mining equipment such as haul trucks, earthmovers, bulldozers, rough-terrain forklifts, etc. This type of underground mining equipment is challenging collateral for most underwriters as it is difficult to locate for inspection audits and is subject to aberrant mining events. The company’s chief financial officer praised Mazuma for overcoming these issues.

“This was a complex transaction. In addition to the geographically transient nature of the collateral, we needed to work with multiple subsidiaries and within an industry that experienced rapid contractions in market capitalization,” said Matt Burrows, Mazuma’s executive vice president of sales. “But our rigorous underwriting practices reveal key data giving us the confidence to know whether an industry has experienced an enduring change or mere market cyclicality.”