TORONTO, Jan. 12 /CNW/ - Anatolia Minerals Development Limited
("Anatolia" or the "Company") (TSX:ANO) 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 Copler 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 Copler. 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.
Anatolia Minerals, long recognized as a leader in exploration and
development in Turkey, is developing its 100%-owned Copler 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 Copler 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 Copler 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.
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.
For further information:
For further information: Edward Dowling, President and CEO, or Douglas
Tobler, Chief Financial Officer at (303) 292-1299 or visit