Teranga Gold draws down first C$70 million under finance facility

By Wendy Van Sickle

Columbus, Ohio, May 7 – Teranga Gold Corp. said it has satisfied all conditions precedent for its first C$70 million drawdown under its secured development finance facility with Taurus Funds Management Pty Ltd.

The facility is comprised of C$165 million to be used toward funding the development of the Wahgnion Gold Project and to repay the company’s outstanding bank debt, according to a press release.

The first drawdown came from this tranche, and C$15 million was used to repay the C$15 million drawn on its revolving credit facility with Societe Generale and to close out that revolver.

The Taurus facility also includes C$25 million to be used toward future advancement of a feasibility study for the Golden Hill Project.

The facility includes a C$10 million dollar carve out for equipment financing, which the company said it is pursuing and anticipates having in place prior to year-end.

All subsequent drawdowns under the facility remain subject to satisfaction of conditions precedent.

The gold explorer is based in Toronto.

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