Gold exploration and development company Roxgold is set to receive a US$75-million senior debt facility towards the development of its Yaramoko gold project, located in the Houndé greenstone region of Burkina Faso, from financial services providers BNP Paribas and Societe Generale Corporate & Investment Banking, the company reported on Thursday.
The senior project debt facility has a six year loan term and will bear interest at a rate of LIBOR plus 4.75% pre-completion and 4.25% post completion of the agreed completion test for the Yaramoko project.
The Facility encompasses a hedging component of up to 65.000 oZ of gold, or approximately 8.5% of Yaramoko’s current reserves, over the life of the loan.
“We are pleased to welcome our new partner, and are thankful for the continued support demonstrated by Societe Generale throughout the financing process,” says Roxgold CEO and president John Dorward.
He goes on to say that Yaramoko is now fully permitted and backed by experienced financing institutions, which are aligned with Roxgold’s goal of commencing production in just over a year.
The availability of the financing facility for draw down is subject to, among other things, a number of customary conditions precedent for facilities of this nature including completion of legal due diligence, implementation of political risk insurance, and lenders’ satisfaction with all project related documentation such as the EPCM and mining contract as well as the mining convention.