TORONTO, Nov. 5, 2013 /CNW/ - Guyana Goldfields Inc. ("GGI" or "the Company") (TSX: GUY) is pleased to announce that it has signed a mandate letter with the
International Finance Corporate ("IFC"), of the World Bank Group, to
lead a senior debt facility in the amount of US$165 Million, of which
US$40 Million is reserved to fund cost overruns. IFC currently has a
5.5% equity stake in the Company.
The debt facility will be used for the development, construction and
working capital requirements of the Aurora Gold Project ("the Project")
and will fully fund the remaining capital required to achieve
commercial production. IFC has provided indicative financial terms
whereby IFC will lead the coordination of the overall debt syndicate
with other commercial banks and multi-lateral and development
institutions, with IFC potentially contributing up to US$65 Million.
There are no anticipated gold hedging provisions foreseen as part of
the facility. IFC's mandate to arrange financing is subject to
satisfactory technical, social, legal and environmental due diligence,
execution of acceptable terms, and documentation and obtaining final
credit, regulatory and board approvals.
Due diligence is proceeding and the completion of the transaction is
expected in the second calendar quarter of 2014. The Company is closely
monitoring its expenditures and commitments for the Project in order to
rationally synchronize spending with the debt financing timeframe.
Scott Caldwell, President & CEO states, "This is an extremely important
development in the advancement of the Aurora Gold Project. The support
of IFC as a shareholder since 2006 is a strong vote of confidence and
reaffirms both the merits of the Project and GGI's execution ability.
We will be working hard to satisfy the banking syndicate's indicative
financial terms, to achieve drawdown as soon as possible."
IFC, a member of the World Bank Group, creates opportunity for people to
escape poverty and improve their lives. IFC fosters sustainable
economic growth in developing countries by supporting private sector
development, mobilizing private capital, and providing advisory and
risk mitigation services to businesses and governments. For more
information, visit www.ifc.org.
About Guyana Goldfields Inc.
Guyana Goldfields Inc. is a Canadian based Company, focused on the
exploration and development of gold deposits in Guyana, South America.
The Company is focused on the construction and development of the
Aurora Gold Project scheduled for initial production in early 2015. The
Project is designed to produce 3.29 million ounces of gold, averaging
194,000 ounces per year, over an initial 17 year mine life. The Aurora
Gold Project has a total gold resource of 6.54 million ounces in the
measured and indicated categories (62.83 million tonnes at a grade of
3.24 g/t) as well as an additional 1.82 million ounces in the inferred
category (16.93 million tonnes at a grade of 3.34 g/t). The Company
also holds a significant portfolio of attractive exploration properties
and currently holds cash balances of US$112 Million as of September 12,
This news release contains "forward-looking information" which may
include, but is not limited to, statements with respect to the
estimation of mineral resources. Often, but not always, forward-looking
statements can be identified by the use of words and phrases such as
"plans," "expects," "is expected," "budget," "scheduled," "estimates,"
"forecasts," "intends," "anticipates," or "believes" or variations
(including negative variations) of such words and phrases, or state
that certain actions, events or results "may," "could," "would,"
"might" or "will" be taken, occur or be achieved. Forward-looking
statements are based on the opinions and estimates of management as of
the date such statements are made and are based on various assumptions.
Forward-looking statements involve known and unknown risks,
uncertainties and other factors which may cause the actual results,
performance or achievements of the Company to be materially different
from any future results, performance or achievements expressed or
implied by the forward-looking statements. Such factors include, among
others, the receipt of applicable regulatory approvals, risks related
to the debt facility proceeding, risks related to the final findings
and assumptions set forth in the Technical Report, general business,
economic, competitive, political and social uncertainties; the actual
results of exploration activities; changes in project parameters as
plans continue to be refined; accidents, labour disputes and other
risks of the mining industry; political instability; delays in
obtaining governmental approvals or financing or in the completion of
development or construction activities, as well as those factors
discussed in the section entitled "Risk Factors" in the Company's
annual information form. Although the Company has attempted to identify
important factors that could cause actual actions, events or results to
differ materially from those described in forward looking statements,
there may be other factors that cause actions, events or results to
differ from those anticipated, estimated or intended. Forward-looking
statements contained herein are made as of the date of this news
release and the Company disclaims any obligation to update any
forward-looking statements, whether as a result of new information,
future events or results, except as may be required by applicable
securities laws. There can be no assurance that forward-looking
statements will prove to be accurate, as actual results and future
events could differ materially from those anticipated in such
SOURCE: Guyana Goldfields Inc.
For further information:
Guyana Goldfields Inc.
Scott A. Caldwell
President and CEO
Vice President, IR & Corporate Communications
Tel: (416) 628-5936 Ext. 2295
Fax: (416) 628-5935