Santa Fe Gold Corp. said Tuesday it obtained financing for its purchase of Columbus Silver Corp., expanding its holdings near an operating mine and mill in southwestern New Mexico.

Albuquerque, N.M.-based Santa Fe closed the first of two $10 million tranches of a credit line with Waterton Global Value LP. The deal also includes a $5 million revolving working capital facility.

As part of the deal, Santa Fe agreed to sell to Waterton the gold and silver produced from the Summit mine and the Mogollon project via a long-term supply agreement.

The acquisition expands Santa Fe's resources near its Summit Mine and mill.

Santa Fe also announced the conversion of $13.5 million principal amount of its Senior Secured Convertible Debentures held by Sulane Holdings Ltd. into 13.5 million shares of common stock at a conversion price of $1 per share.