TSXV-listed Roxgold has secured US$75 Million debt financing for the development of the Yaramoko Gold Project in Burkina Faso.

The mandated banks, Societe Generale Corporate & Investment Banking (Societe Generale) and Credit Suisse AG (Credit Suisse) have received credit approvals to provide a senior debt facility of US$75 million towards the development of Yaramoko.

Roxgold has signed a binding commitment letter for a project debt facility of US$75 million with the banks, 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. 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.

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