Leagold Mining lines up term loan, revolver totaling $400 million

By Wendy Van Sickle

Columbus, Ohio, May 1 – Leagold Mining Corp. has received a binding commitment from Societe Generale, Investec Bank plc and ING Capital LLC for a $200 million amortizing term loan and a $200 million revolving credit facility, according to a news release.

Each of the tranches has a 5.5-year maturity.

The full term loan and $150 million of the revolver are available on closing and the remaining $50 million of the revolver will be available for construction of the company’s Santa Luz project, which is set to begin in early 2021.

Borrowings will bear interest at Libor plus a margin ranging from 375 basis points to 445 bps, an improvement from the company’s existing term loan interest of Libor plus 700 bps.

The term loan repayments are scheduled to begin Sept. 30, 2021.

The initial loans will be used to repay $238 million of existing loan debt and to finance the phased expansion of Leagold’s Los Filos mine.

Based in Vancouver, B.C., the gold miner focuses on opportunities in Latin America.

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