TORONTO, Oct. 20, 2014 /CNW/ - Guyana Goldfields Inc. (TSX: GUY) ("GGI") and its wholly owned subsidiary, AGM Inc., (together, the "Company") are pleased to advise that financial close has been achieved and first drawdown has been obtained in connection with the US$185 Million (M) project finance facility (the "Facility") to fund the development and construction of the 100%-owned Aurora Gold Project located in Guyana, South America (see press release dated September 3, 2014). First drawdown has been obtained in the amount of US$42.6M with subsequent payments expected to be received on a monthly basis, established on project funding requirements.
Scott Caldwell, President & Chief Executive Officer of GGI states, "We are pleased to have fulfilled all conditions related to the Facility in order to obtain first drawdown. The construction schedule is approximately 40% complete and we currently have over 500 people working at site, majority of which are Guyanese nationals, with this rapidly expanding to 900 people by the end of the year in order to support construction efforts and our timeline of reaching commercial production by mid-2015".
The Facility consists of two tranches: a Tranche 1 facility of US$160M and a Tranche 2 cost overrun facility of US$25M. The maximum term of the Facility is eight years and advances under the Facility bear a weighted average interest rate of 3-month LIBOR plus 5.11% for Tranche 1 facility, and advances under the Tranche 2 facility would bear interest at the same average range of rates plus 0.5% (if drawn). There are no gold hedging requirements or other similar provisions associated with the Facility.
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. GGI is focused on the construction and development of the Aurora Gold Project scheduled for commercial production in mid-2015. 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 3.24 g/t Au) as well as an additional 1.82 million ounces in the inferred category (16.93 million tonnes at 3.34 g/t Au). For further details, please refer to the press release dated December 9, 2013 and the report entitled "NI 43-101 Technical Report, Updated Feasibility Study – Aurora Gold Project" dated January 29, 2013 available on SEDAR at www.sedar.com. GGI also holds a significant portfolio of attractive exploration properties and holds cash and cash equivalents of US$68M as of July 31, 2014.
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, the timing of the advance of the funds pursuant to the Facility, fulfilling all conditions precedent to the advance of funds pursuant to the Facility, 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 GGI'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 statements.
SOURCE: Guyana Goldfields Inc.
For further information: Guyana Goldfields Inc.: Scott A. Caldwell, President and Chief Executive Officer; Jacqueline Wagenaar, Vice President, Investor Relations & Corporate Communications, Tel: (416) 628-5936 Ext. 2295, Fax: (416) 628-5935, E-mail: email@example.com, Website: www.guygold.com