Roxgold Provides Financing Update for The Yaramoko Gold Project

US$75 Million Debt Facility Credit Approved

TORONTO, Feb. 11, 2015 /CNW/ - Roxgold Inc. ("Roxgold" or "the Company") (TSX.V: ROG) 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.

"Neither TSX Venture Exchange nor its Regulation Services Provider nor BNP Paribas nor Societe Generale (as that term is defined in policies of the TSX Venture Exchange) accepts any responsibility or liability of any nature whatsoever for the adequacy, completeness or accuracy of this release which is made solely and entirely by, and under the responsibility and with the liability of, the Company."

This news release contains forward-looking information. These statements are based on information currently available to the Company and the Company provides no assurance that actual results will meet management's expectations. In certain cases, forward-looking information may be identified by such terms as "anticipates", "believes", "could", "estimates", "expects", "may", "shall", "will", or "would". Forward-looking information contained in this news release is based on certain factors and assumptions regarding, among other things, the estimation of mineral resources and mineral reserves, the realization of resource estimates and reserve estimates, gold metal prices, the timing and amount of future exploration and development expenditures, the estimation of initial and sustaining capital requirements, the estimation of labour and operating costs, the availability of necessary financing and materials to continue to explore and develop the Yaramoko project in the short and long-term, the progress of exploration and development activities, the receipt of necessary regulatory approvals, the completion of the environmental assessment process, and assumptions with respect to currency fluctuations, environmental risks, title disputes or claims, and other similar matters. While the Company considers these assumptions to be reasonable based on information currently available to it, they may prove to be incorrect.  The Company cautions investors that any forward-looking statements by the Company are not guarantees of future results or performance, and that actual results may differ materially from those in forward-looking statements as a result of various factors, including, but not limited to, variations in market conditions, the nature, quality and quantity of any mineral deposits that may be located, the Company's ability to obtain any necessary permits, consents or authorizations required for its activities, the Company's ability to be fully able to implement its business strategies and other risk factors described in the Company's annual information form and other filings with the Canadian securities regulators which may be viewed at www.sedar.com.

SOURCE Roxgold Inc.

For further information: Annelise Burke, Manager, Investor Relations and Corporate Communications, 416-203-6401, aburke@roxgold.com

RELATED LINKS
www.roxgold.com

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