B2gold’s Otjikoto
gold mine near
Otavi in Namibia
 
Vancouver, Canada — 22 April 2013

Canadian-based mid-tier gold producer B2Gold has secured a US$150 million revolving loan facility that will be used in part to finance construction of the Otjikoto Gold Mine near Otavi in Namibia.

Canadian-based mid-tier gold producer B2Gold has secured a US$150 million revolving loan facility that will be used in part to finance construction of the Otjikoto Gold Mine near Otavi in Namibia.

Macquarie Bank Limited is the sole underwriter, and the syndicate includes HSBC Securities (USA) Inc. as a lead arranger with HSBC Bank USA, and National Association who committed to fund US$50 million of the facility. FirstRand Bank Limited, acting through its Rand Merchant Bank division, committed to fund US$25 million

The facility comprises three tranches of US$50 million each for a total of US$150 million and replaces the existing US$25 million revolving credit facility with Macquarie Bank. The term of the facility, which has an interest rate of LIBOR plus a margin of 3.5%, is for a period of four years with a final repayment date of 28 March 2017.

B2Gold said the facility would be used to fund construction and development costs related to the Otjikoto gold project and for general corporate purposes.

Construction of the mine, which has a 12-year life of mine based on the probable reserves, started in earnest in January, although a formal ground-breaking ceremony to be officiated by minister of mines and energy Isak Katali is scheduled for later this month.

Construction is due for completion in the fourth quarter of 2014 when mill production is expected to begin, while the first full year of gold production is scheduled for 2015.

Based on current reserve estimates, the mine is expected to produce about 141,000ozpa of gold for the first five years at an average operating cash cost of US$524/oz.  

The Otjikoto gold project is 92% owned by B2Gold, and 8 % by EVI Gold (Pty) Ltd, a Namibian black empowerment group.

B2Gold is listed on the Namibia and Toronto Stock Exchanges.

Source: B2gold. For more information, click here.