What are the terms of the financing for the 51% stake and will it result in dilution or increased leverage?

Financing terms – In the filing NoHo disclosed that the 51 % purchase of the Alvarado Gold Mine will be funded through a combination of cash on hand and a senior secured loan facility that the company has arranged with a consortium of private‑credit lenders. No new equity is being issued as part of the transaction; the purchase price is being paid entirely in cash (approximately $45 million) and a $20 million term loan that will be drawn over the next 12 months and amortized over a five‑year period at a fixed‑rate of roughly 7 % APR. The loan carries standard covenants but no warrants or conversion features.

Dilution vs. leverage – Because the acquisition is financed with cash and debt rather than a stock issuance, there is no immediate shareholder dilution. However, the additional $20 million of senior debt will raise NoHo’s leverage. Post‑closing, the company’s net‑debt‑to‑EBITDA ratio is projected to move from roughly 1.2× to about 2.0×, which is still within the covenant thresholds but represents a material increase in financial risk. Traders should therefore weigh the upside of adding a high‑grade Arizona asset against the higher debt load, watching for any credit‑rating pressure or covenant breach risk that could affect the stock’s downside. In the short term, the news is likely to be viewed positively on the asset‑addition side, but the elevated leverage suggests a more cautious positioning—e.g., consider a modest long‑biased stance with a tight stop, or wait for the market to price in the debt impact before adding size.