Allied Nevada Gold Corp. reported that on Dec. 27 the company entered into the Second Amended and Restated Credit Agreement (the "Credit Agreement") with The Bank of Nova Scotia as agent.

The Credit Agreement amends the prior revolving credit facility provided under, the Amended and Restated Credit Agreement, entered into with the Agent and other lenders dated as of October 31, 2012 (the "Prior Agreement"), as follows:

• The size of the revolving credit facility has been reduced from $120 million to $40 million;
• The cash flow related covenants included in the Prior Agreement, specifically the Leverage Ratio and the Interest Coverage Ratio, have been eliminated;
• The amount available to borrow under the Credit Agreement will be determined by a Borrowing Base (primarily the value of inventory on the leach pads) as defined in the Credit Agreement; 
• The Credit Agreement will have a maturity date of April 30, 2016;
• The Credit Agreement includes covenants to maintain (i) a post-maturity Reserve Tail, as defined in the Credit Agreement, of 600,000 recoverable gold equivalent ounces and (ii) a Current Ratio, as defined in the Credit Agreement, of not less than 1.25;
• The Credit Agreement includes an accordion feature allowing the Credit Agreement to be increased to $75 million.

In connection with entering into the Credit Agreement, the company also entered into an Amendment Agreement and Credit Support Annex to the ISDA Master Agreement ("ISDA Amendments") with Société Générale and will enter into one with National Bank Canada (the "Lenders") whereby the Company will be required, beginning no later than January 10, 2014, to either cash collateralize or post a letter of credit for any amount due to the Lenders for the fair market value of the then current settlement cost of CDN $90 million of the cross currency swap which was entered into between the Lenders and the Company in connection with the issuance of the Company's CDN $400 million 8.75% senior notes. Had the Company been required to either cash collateralize or post a letter of credit with the Lenders as of December 27, 2013, the amount tendered would have been approximately $8.2 million. The Company intends to utilize the Credit Agreement to post letters of credit with the Lenders.