HomeNewsRoxgold obtains flexible credit facility for Yaramoko gold mine

Roxgold obtains flexible credit facility for Yaramoko gold mine

The TSX-listed gold miner has also amended the initial facility with BNP Paribas and Societé Generalé Corporate & Investment Banking in order to reduce borrowing costs and obtain more financial flexibility.

Roxgold confirmed that the Yaramoko gold mine successfully passed the lenders’ completion test, which encompasses a number of key performance and financial metrics including reserve grade reconciliation, plant throughput, metal recoveries and operating costs. As a result of passing the completion test, the $15 million cost overrun facility required under the initial facility has been released.

The initial facility of $75 million has been amended to a $60 million credit facility, amortising on a quarterly basis, maturing in June 2021 at an interest rate of LIBOR plus 3.75%, which represents a reduction of 1.00% from the current prevailing rate.

The amended facility is no longer subject to a semi-annual mandatory cash sweep and reduces restrictions on the timing and usage of cash flow generated from the Yaramoko Gold Mine. The first $15 million tranche of the amended facility has also been arranged as a revolving credit facility to provide further financial flexibility.

“We continue to have a positive relationship with our partners, Societé Generalé and BNP Paribas, and thank them for their continued support,” said John Dorward, president and CEO.

“Successfully completing the lenders’ completion test straight out of the gate is a significant milestone for Roxgold and the terms of the amended facility will allow us the flexibility to execute on our strategy of organic growth.”