5th Jun 2020 10:57
(Alliance News) - Russia-focused gold producer Trans-Siberian Gold PLC said Friday its subsidiary AO Trevozhnoye Zarevo has agreed with PJSC VTB Bank for a revolving credit line with a limit of USD10 million for three years.
The agreement will successfully refinance an existing credit line with a limit of USD5 million, which expires on June 20 and will enhance Trans-Siberian's short-term liquidity.
The interest rate on the new facility has been reduced to 5.2% per annum from 6.2%, and the credit agreement will retain customary representations and warranties from Trevozhnoye Zarevo to VTB and is secured against the subsidiary's equity and fixed assets.
"We are pleased to successfully re-finance our lending arrangements with VTB who have been a supportive bank to the group. As a result, we have greater liquidity on improved terms. Our leverage remains very manageable and low when compared to our peers," said Chief Executive Officer Alexander Dorogov.
Shares in Trans-Siberian Gold were up 6.6% at 89.50 pence on Friday in London.
By Dayo Laniyan; [email protected]
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