Credit Suisse & Societe Generale Receive Credit Committee Approvals
TORONTO, Sept. 30, 2014 /CNW/ - Roxgold Inc. ("Roxgold" or "the Company") (TSXV: ROG) is pleased to announce that it has secured its previously announced debt financing package. The mandated banks, Societe Generale Corporate & Investment Banking ("Societe Generale") and Credit Suisse AG ("Credit Suisse"), (collectively the "Banks"), have received credit approvals to provide a Senior Debt Facility of US$75 million towards the development of the Company's Yaramoko Gold Project in Burkina Faso.
- The Company and Banks have signed a binding commitment letter for a Project Debt Facility of US$75 million, with an equity funded US$20 million Cost Overrun Account;
- The Senior Project Debt Facility has a six year loan term and will bear interest at a rate of LIBOR plus 4.25% to 4.75%;
- Roxgold is not required to take out political risk insurance as part of the arrangement; and
- The Facility encompasses a hedging component of up to 65,000 ounces of gold, or approximately 8.5% of Yaramoko's current reserves, over the life of the loan.
"Yaramoko is a unique asset, and we are delighted to see its quality reflected in the attractive terms outlined in our debt financing package, including very competitive interest rates," commented John Dorward, President and Chief Executive Officer. "We mandated the Banks three months ago and are very pleased to have secured the support of Credit Suisse and Societe Generale in such a short period of time. We look forward to working in partnership with these experienced institutions to advance Yaramoko towards development in the fourth quarter."
The Facility is expected to fully address the debt component required to fund the development of the Yaramoko Gold Project. Other than the standard Burkina Faso government royalty, the project remains unencumbered by third party royalties or streaming arrangements.
The finalization of loan documentation is targeted for completion in late Q4 2014, with first drawdown expected shortly thereafter. Drawing under the Credit Agreement is subject to customary conditions precedent, including the approval of the Company's Exploitation (Mining) Permit.
Under the Loan Facility, Societe Generale is acting as the Documentation Agent and Credit Suisse is acting as the Technical Agent. The Company is being advised by Cutfield Freeman & Co. and Norton Rose Fulbright LLP. The Banks are being advised by Mayer Brown LLP and Roscoe Postle Associates Inc. (Independent Engineer).
|EPCM Contract Finalization||Q4 2014|
|Power Supply Agreement Finalization||Q4 2014|
|Exploitation (Mining) Permit Approval||Q4 2014|
|Recommencement of Regional Exploration Program||Q4 2014|
|Financial Close and First Drawdown on Debt Facility||Q4 2014|
|Commencement of Development||Late Q4 2014|
Roxgold is a gold exploration and development company with its key asset, the high grade, 100% owned Yaramoko Gold Project located in the Houndé greenstone region of Burkina Faso, West Africa. The Company is currently advancing Yaramoko's 55 Zone through permitting and, subject to making a positive construction decision, expects to commence development in Q4 2014. Roxgold trades on the TSX Venture Exchange under the symbol ROG.
"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, statements with respect to: (i) the estimation of inferred and indicated mineral resources and probable mineral reserves; (ii) the success of exploration activities; (iii) the completion and timing of the environmental assessment process (iv) the results of the Feasibility Study including statements about future production, future operating and capital costs, the projected IRR, NPV, payback period, and production timelines for the 55 Zone on the Yaramoko permit.
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 project in the short and long-term, the progress of exploration and development activities, the receipt of necessary regulatory approvals, the completion of the environmental assessment process, 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.
Forward looking information involves 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 information. Such factors include risks inherent in the exploration and development of mineral deposits, including risks relating to changes in project parameters as plans continue to be redefined including the possibility that mining operations may not commence at the Yaramoko project, risks relating to variations in mineral resources and mineral reserves, grade or recovery rates resulting from current exploration and development activities, risks relating to changes in gold prices and the worldwide demand for and supply of gold, risks related to increased competition in the mining industry generally, risks related to current global financial conditions, uncertainties inherent in the estimation of mineral resources and mineral reserves, access and supply risks, reliance on key personnel, operational risks inherent in the conduct of mining activities, including the risk of accidents, labour disputes, increases in capital and operating costs and the risk of delays or increased costs that might be encountered during the development process, regulatory risks, including risks relating to the acquisition of the necessary licenses and permits, financing, capitalization and liquidity risks, including the risk that the financing necessary to fund the exploration and development activities at the Yaramoko project may not be available on satisfactory terms, or at all, risks related to disputes concerning property titles and interest, and environmental risks. Please refer to the Company's Short Form Prospectus dated March 17, 2014 filed on SEDAR at www.sedar.com for political, environmental or other risks that could materially affect the development of mineral resources and mineral reserves. This list is not exhaustive of the factors that may affect any of the Company's forward-looking information. These and other factors should be considered carefully and readers should not place undue reliance on the Company's forward-looking information. The Company does not undertake to update any forward-looking information 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.
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