Anatolia's Çopler senior debt facility approved at US$62.5 million
Mon Jan 12, 11:01 AM
ca.news.finance.yahoo.com
TORONTO, Jan. 12 /CNW/ - Anatolia Minerals Development Limited ("Anatolia" or the "Company") (TSX: ANO.TO) announces that Bayerische Hypo- und Vereinsbank AG, a member of UniCredit Group ("HVB") has received final credit approval to fully underwrite and provide US$62.5 million in senior project debt (the "Debt Facility") for the Company's Çopler Gold Project in Turkey.
The Debt Facility has a six year term. There is no penalty for early repayment. Interest is variable based on the U.S. Dollar LIBOR rate plus margin. The Company may elect to fix the interest rate through an interest rate swap facilitated by HVB.
Closing of the Debt Facility will occur upon finalization of documentation, which is largely complete. Drawdown of the Debt Facility is contingent upon customary conditions precedent. Management anticipates all conditions precedent should be completed by the second quarter 2009, clearing the way for drawdown. Among the required conditions precedent, the Company will be required to fully fund the project equity component and provide limited gold price protection during the initial ramp-up year of production. Management estimates that purchasing gold put options for approximately 40,000 ounces of gold at a price of US$750/ounce will meet the price protection requirements. This represents price protections on about 35% of the initial year's estimated production of 113,000 ounces. No forward sales or other forms of fixed delivery obligations are anticipated under current market conditions.
The approved debt facility is slightly smaller than the US$70 million anticipated at the time HVB was mandated. Management evaluated the additional costs and risks associated with a recently requested hedging program that would have been required by the bank to extend the facility above US$62.5 million and concluded it was in the best interest of the Company's shareholders to limit the size of the facility to the approved amount.
Edward Dowling, President and CEO of Anatolia stated, "Receiving HVB's approval for this fully underwritten Debt Facility is excellent news and an extraordinary financial milestone for Anatolia. This speaks to the highly compelling economic potential at Çopler. We are very pleased with HVB's partnership to arrange this facility."
Cutfield Freeman & Co Limited, London, England, has been acting as advisors to Anatolia on the transaction.
About Anatolia
Anatolia Minerals, long recognized as a leader in exploration and development in Turkey, is developing its 100%-owned Çopler Gold Project. Initial plans are to produce approximately 1.3 million ounces of gold at a cash cost of about $254 per ounce. The first gold pour at Çopler is expected in early 2010 with full production of about 175,000 ounces of gold per year anticipated in 2011. Additional production expansion of the oxide and sulfide gold resource is expected at Çopler by taking advantage of the inherent large resource through on-going technical activities. In addition, Anatolia holds a significant pipeline of prospective gold and base metal projects.
Anatolia currently has 83.1 million common shares issued and outstanding, 102.5 million fully diluted. Anatolia's common shares are listed for trading on the Toronto Stock Exchange under the symbol ANO.
Cautionary Statements
Certain statements contained in this news release constitute forward-looking information, future oriented financial information, or financial outlooks (collectively "forward-looking information") within the meaning of Canadian securities laws. Forward-looking information may relate to this news release and other matters identified in Anatolia's public filings, Anatolia's future outlook and anticipated events or results and, in some cases, can be identified by terminology such as "may", "will", "could", "should", "expect", "plan", "anticipate", "believe", "intend", "estimate", "projects", "predict", "potential", "continue" or other similar expressions concerning matters that are not historical facts and include, but are not limited in any manner to, those with respect to commodity prices, mineral resources, mineral reserves, realization of mineral reserves, existence or realization of mineral resource estimates, the timing and amount of future production, the timing of construction of the proposed mine and process facilities, capital and operating expenditures, economic conditions, availability of sufficient financing, and any and all other timing, development, operational, financial, economic, legal, regulatory, political factors that may influence future events or conditions. Such forward-looking statements are based on a number of material factors and assumptions, including, but not limited in any manner, those disclosed in any other Anatolia filings, and include the ultimate determination of mineral reserves, availability and final receipt of required approvals, licenses and permits, sufficient working capital to develop and operate the proposed mine, access to adequate services and supplies, commodity prices, foreign currency exchange rates, interest rates, access to capital markets and associated cost of funds, availability of a qualified work force, and the ultimate ability to mine, process and sell mineral products on economically favorable terms. While we consider these assumptions to be reasonable based on information currently available to us, they may prove to be incorrect. Actual results may vary from such forward-looking information for a variety of reasons, including but not limited to risks and uncertainties disclosed in other Anatolia filings at www.sedar.com and other unforeseen events or circumstances. Other than as required by law, Anatolia does not intend, and undertakes no obligation to update any forward looking information to reflect, among other things, new information or futures events.
Contacts
Edward Dowling
President and CEO
or Douglas Tobler
Chief Financial Officer at (303) 292-1299 or visit www.anatoliaminerals.com |
