28th Apr 2014 11:40
LONDON (Alliance News) - Aureus Mining Inc Monday said it is to draw down approximately USD32.0 million of its new USD100.0 million debt facility provided by Nedbank Ltd, FirstRand Bank Ltd and RMB Resources in a move that will finance the development of the company's New Liberty Gold project.
In a statement, Aureus said the first drawdown represents the start of the project's construction costs being funded by the banks.
The funding follows Aureus Mining's own contribution to the project's development costs, which primarily comprised the earthwork and civil construction costs, engineering and design costs and long lead mechanical equipment costs.
The project finance loan facilities comprise an USD88.0 million project finance loan facility agreement, including an USD8.0 million cost overrun facility, with Nedbank and RMB and a subordinated loan facility agreement for USD12.0 million with RMB Resources. The overall interest cost for the project finance loan facilities is around 6%.
"Satisfying the conditions precedent for the project finance loan facilities is another key milestone achievement for Aureus in the development of Liberia's first commercial gold mine," David Reading, president and chief executive, said in a statement.
"We have made good progress to date with construction at New Liberty and, with the drawdown of what is a very compelling finance package, we look forward to completing the construction and pouring first gold in [the first-quarter of] 2015. We are delighted to be working with Nedbank, RMB, ECIC and RMB Resources as key partners in providing the debt component for the New Liberty Project," Reading said.
Aureus Mining shares were Monday quoted at 28.50 pence, up 0.9%.
By Samuel Agini; [email protected]; @samuelagini
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