TORONTO, Oct. 9, 2013 /CNW/ - Geodrill Limited ("Geodrill" or the "Company") (TSX: GEO), a leading West African based drilling company, announced today that the Company (through its Ghanaian subsidiary) has obtained a credit line (the "Credit Line") with Zenith Bank (Ghana) Limited, a subsidiary of Zenith Bank Plc, for an amount of up to US$5 million. The Credit Line allows Geodrill to access up to US$5 million for a period of two years from the date of the first drawdown. Amounts drawn under the Credit Line will bear interest at a rate of 10.5% per annum and will be secured by the existing Asset Debenture for the existing term loan with Zenith Bank (Ghana) Limited. Interest on any funds withdrawn will be repayable on a quarterly basis with the principal amount withdrawn being repayable at the maturity of the Credit Line.
The Company may use the proceeds available under the Credit Line to finance general corporate expenditures including working capital needs, to pay quarterly loan repayments, and to assist with capital expenditures of the Company.
The Company has not utilized any portion of the Credit Line.
About Geodrill Limited
Geodrill Limited is a leading West African based drilling company operating in Ghana, Burkina Faso, Ivory Coast, Niger and Guinea. Geodrill provides exploration and development drilling services to major, intermediate and junior mining companies with exploration and development operations in West Africa. The Company specializes in providing reverse circulation, diamond core and air-core drilling services using a modern fleet of drill rigs. The Company plans to grow organically and build its current client base while continuing to assess expansion opportunities throughout West Africa and other jurisdictions of Africa, to meet demand for its services and expertise.
Forward Looking Information
This press release may contain "forward-looking information" which may include, but is not limited to, statements with respect to use of proceeds, the availability of the funds when required, the future financial or operating performance of the Company, its subsidiaries, future growth, results of operations, performance, business prospects and opportunities. Often, but not always, forward-looking statements can be identified by the use of words 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 by the use of words or phrases that 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 certain assumptions and analyses made by the Company in light of its experience and perception of historical trends, current conditions and expected future developments and other factors it believes are appropriate. Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company and/or its subsidiaries to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements contained in this press release including, without limitation those described in the Management's Discussion & Analysis for the quarter ended June 30, 2013 and the Company's Annual Information Form dated March 27, 2013 under the heading "Risk Factors". Although the Company has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in such forward-looking statements, there may be other factors that may cause actions, events or results to differ from those anticipated, estimated or intended. Should one or more of these risks or uncertainties materialize or should assumptions underlying such forward-looking statements prove incorrect, actual results, performance or achievements may vary materially from those expressed or implied by the forward-looking statements contained in this press release. The forward-looking information and forward-looking statements contained herein are made as of the date of this press release and the Company disclaims any obligation to update or review such information or statements, whether as a result of new information, future events or results of otherwise, except as required by law.
SOURCE: Geodrill Limited
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