Guyana Goldfields finalizes $185 million Aurora Gold Project facility

By Lisa Kerner

Charlotte, N.C., Sept. 3 – Guyana Goldfields Inc. and its wholly owned subsidiary AGM Inc. signed agreements finalizing the previously announced arrangement of a $185 million senior secured project finance facility with mandated lead arrangers International Finance Corp., Export Development Canada, ING Capital LLC, Caterpillar Financial Services Corp. and the Bank of Nova Scotia.

The project loan facility consists of two tranches: a $160 million tranche 1 facility and a $25 million tranche 2 cost overrun facility.

The maximum term of the facility is eight years. Borrowings will bear a weighted average interest rate of Libor plus 5.11% for the tranche 1 facility. Advances, if drawn under the tranche 2 facility, would bear interest at the same average rate plus 0.5%.

As previously reported, there are no gold hedging requirements or other similar provisions associated with the facility.

Guyana is obligated to fund an additional $33 million as a condition of first disbursement. The company satisfied the requirement through a fully subscribed, non-brokered private placement offering.

According to the release, Guyana management expects to obtain first drawdown of the facility this month.

With the financing, the Aurora Gold Project in South America is now fully funded.

Guyana Toronto-based Guyana Goldfields is a gold explorer.

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