VANCOUVER, Oct. 15 /CNW/ - Luna Gold Corp. (TSXV-LGC) ("Luna" or the "Company") is pleased to announce that it has accepted an offer of finance for a two-tranche, senior secured, project debt facility (the "Facility") in the amount of up to US$15 million with RMB Resources Inc. The Facility will be used to assist in the completion of the development of Luna's Aurizona gold project. Tranche 1 is in the amount of US$7.5 million and is available for the completion of the Aurizona development. Tranche 2, if necessary, is in the amount of US$7.5 million and is available for working capital purposes while the operation ramps up to full production capacity and steady earnings inflow. Both tranches of the Facility will bear interest at LIBOR plus 7.5% and are to be fully repaid by December 31, 2012.
Jim Bahan, Luna's President comments: "The Aurizona Project is well on its way to achieving expected gold production in Q2 2010. This financing provides assurance that sufficient funds are in place to complete the construction of the project and realize future cash flows from gold production. It also allows Luna the opportunity to consider a more ample exploration program to discover additional near surface gold resources."
About Luna Gold Corp.
Luna is a mineral exploration and development company engaged in the acquisition, exploration, and development of gold resources and advanced stage gold exploration projects in Brazil. The Company is currently developing its Aurizona gold project in Maranhao, Brazil.
On behalf of the Board of Directors
LUNA GOLD CORP.
Jim Bahan - CEO
Neither the TSX Venture Exchange nor its Regulation Services Provider (as
that term is defined in the policies of the TSX Venture Exchange) accepts
responsibility for the adequacy or accuracy of this release.
Statements in this release that are forward-looking statements are subject to various risks and uncertainties concerning the specific factors identified in Luna Gold Corp.'s periodic filings with Canadian Securities Regulators. These factors include the inherent risks involved in the exploration and development of mineral properties, the uncertainties involved in interpreting drill results and other exploration data, the potential for delays in exploration or development activities, the geology, grade and continuity of mineral deposits, the possibility that future exploration, development or mining results will not be consistent with the Company's expectations, accidents, equipment breakdowns, title matters, labor disputes or other unanticipated difficulties with or interruptions in production and operations, fluctuating metal prices, the possibility of project cost overruns or unanticipated costs and expenses, uncertainties relating to the availability and costs of financing needed in the future, the inherent uncertainty of production and cost estimates and the potential for unexpected costs and expenses, commodity price fluctuations, currency fluctuations, regulatory restrictions, including environmental regulatory restrictions and liability, competition, loss of key employees, and other related risks and uncertainties. The Company undertakes no obligation to update forward-looking information except as required by applicable law. Such forward-looking information represents management's best judgment based on information currently available. No forward-looking statement can be guaranteed and actual future results may vary materially. Accordingly, readers are advised not to place undue reliance on forward-looking statements or information.
SOURCE LUNA GOLD CORP.
For further information: For further information: Investor Relations at (604) 689-7317 or toll free at 1-866-689-7317