TORONTO, Sept. 14, 2015 /CNW/ - Roxgold Inc. (the "Company" or "Roxgold ") (ROG.V) is pleased to announce that the first drawdown of US$30 million has been completed under the previously announced US$75 million 6-year senior secured project finance facility (the "Facility) for the development of the Yaramoko Gold Project ("Project") in Burkina Faso. The Facility is jointly provided by Societe Generale Corporate & Investment Banking and BNP Paribas ("The Banks").
- Overall construction program approximately 36% complete
- Bulk earthworks approximately 95% complete
- Water Storage Facility and Tailings Storage Facility embankments completed ahead of schedule
- Mine access boxcut completed and portal collar ground preparations completed
- Underground access ramp developed to 30 metres
- Permanent accommodation camp approximately 85% complete
- Project budget on track with approximately US$27 million spent out of a total US$44 million committed of the estimated US$110.8 million project capital cost
- Project Commissioning remains targeted for mid-2016
Since the last update, activities on site at the Yaramoko Gold Project have continued to advance with the bulk earthworks and camp construction approaching completion. Underground mine development and process plant civil works have also commenced.
The major contractors are established on site with management facilities and infrastructure in place. At the end of August, the company had spent approximately US$27 million and remains on target to complete the project within the budget of US$110.8 million.
Roxgold President & CEO, John Dorward states: "We are pleased that the project continues to progress well. The initial drawdown under the project finance facility is a significant milestone and I would like to thank our team as well as our advisors for their efforts."
Bulk earthworks are well advanced and are approximately 95% complete. The Water Storage Facility has been completed and has collected an estimated 170,000 m3 of water during the current wet season. In addition, the Tailings Storage Facility embankment has been completed. Both of these structures have been constructed as per the project design and budget.
The construction of the 190 person accommodation camp continues to advance well and is approximately 85% complete. All building structures have been built and final fit out of the residential quarters is continuing. Initial occupancy is expected by late September.
Underground ramp development has advanced 30 metres from the mine portal and the installation of the Armtec tunnel continues on schedule. Concrete footings for this structure are completed and erection of the reinforced tunnel has commenced.
Roxgold's underground mining contractor, African Underground Mining Services ("AUMS"), continues to mobilise its temporary infrastructure and is established on site with all required equipment for the underground development. Development of the permanent surface mining infrastructure, including workshops, offices and the back-up power station is continuing.
Construction of the processing plant is approximately 26% complete, with key structures, including the Semi Autogenous Grinding ("SAG") mill pedestals and carbon-in-leach ("CIL") tank ringbeams completed, with the gold room and reclaim tunnel well advanced. Process plant civil works have commenced and are approximately 40% complete.
The engineering, procurement and construction ("EPC") contractor, DRA/Group Five Joint Venture, has completed all design and long lead procurement contracts. Structural steel and platework for the plant is scheduled to commence arriving on site during September.
With the recently completed private placement to the International Finance Corporation ("IFC") (see Roxgold Press Release dated September 9th, 2015) and the project finance facility, Roxgold is fully funded to complete the Yaramoko Gold Project. Following completion of the initial drawdown of the debt financing facility, the Company's cash position, including the restricted US$15 million cost over-run account, is approximately US$61 million.
Available project financing remaining from the debt facility is US$45 million. A further US$10 million is available from AUMS in exchange for pre-production underground development work (see Roxgold Press Release dated September 29, 2014).
Remaining estimated pre-production capital required for the development of the Yaramoko Gold Project is US$85.3 million. Total Facility interest and fees are approximately US$4.5 million.
Advances under the project finance facility will bear interest at a rate of LIBOR plus 4.75% pre-completion and 4.25% post completion.
Craig Richards P. Eng, Principal Mining Engineer for Roxgold Inc., a Qualified Person within the meaning of National Instrument 43-101, has verified and approved the technical data disclosed in this press release.
Shareholders are encouraged to follow the progress of the Yaramoko Gold Project in our Photo Gallery on our website at www.roxgold.com
"Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release."
This news release contains forward-looking information. Forward looking information contained in this new release includes, but is not limited to, the expected completion of the balance of the AUMS equity financing facility and the terms thereof, and the expected use of proceeds thereof. 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 Gold Project in the short and long-term, the progress of exploration and development activities, the receipt of necessary regulatory approvals, including the approval of the TSX Venture Exchange for the balance of the AUMS equity financing facility, 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.
Although the Company believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those in the forward-looking statements. Factors that could cause actual results to differ materially from those in forward-looking statements include: changes in market conditions, unsuccessful exploration results, changes in the price of gold, unanticipated changes in key management personnel and general economic conditions. Mining exploration and development is an inherently risky business. Accordingly, actual events may differ materially from those projected in the forward-looking statements. This list is not exhaustive of the factors that may affect any of the Company's forward-looking statements. These and other factors should be considered carefully and readers should not place undue reliance on the Company's forward-looking statements. The Company does not undertake to update any forward-looking statement that may be made from time to time by the Company or on its behalf, except in accordance with applicable securities laws.
SOURCE Roxgold Inc.
For further information: Toni Davies, Manager Investor Relations, 416-203-6401, [email protected]