Roxgold (ROG-V) Feb 11, '15 is pleased to announce that BNP Paribas has signed a commitment letter to provide together with Societe Generale Corporate & Investment Banking ("Societe Generale") a total of US$75 million Debt Facility towards the development of Roxgold's Yaramoko Gold Project in Burkina Faso. Closing and draw down of the Senior Project Debt Facility will now be subject to the execution of final documentation and satisfaction of conditions precedent.
HIGHLIGHTS:
Senior Project Debt Facility of US$75 million;
The Company will provide an equity funded US$15 million Cost Overrun Account;
The Senior Project Debt Facility has a six year loan term and will bear interest at a rate of LIBOR plus 4.75% pre-completion and 4.25% post completion of the agreed completion test for the Yaramoko Gold Project; and
The Facility encompasses a hedging component of up to 65,000 ounces of gold, or approximately 8.5% of Yaramoko's current reserves, over the life of the loan.
"We are pleased to welcome our new partner, and are thankful for the continued support demonstrated by Societe Generale throughout the financing process," said John Dorward, President and CEO. "Yaramoko is now fully permitted and backed by experienced financing institutions, which are aligned with our goal of commencing production in just over a year."
The availability of the financing facility for draw down is subject to, among other things, a number of customary conditions precedent for facilities of this nature including completion of legal due diligence, implementation of political risk insurance, and lenders' satisfaction with all project related documentation such as the EPCM and mining contract as well as the mining convention.
About Roxgold
Roxgold is a gold exploration and development company with its key asset, the high grade Yaramoko Gold Project, located in the Houndé greenstone region of Burkina Faso, West Africa. The Company is currently advancing Yaramoko's 55 Zone and subject to making a positive construction decision expects to commence development in Q1 2015. Roxgold trades on the TSX Venture Exchange under the symbol ROG.
FOR MORE INFORMATION:
Annelise Burke
Manager, Investor Relations and Corporate Communications
416-203-6401
aburke@roxgold.com |
