Anatolia closes $62.5 million debt facility

By Jennifer Chiou

New York, April 1 - Anatolia Minerals Development Ltd. announced the closing of the $62.5 million senior project debt with Bayerische Hypo- und Vereinsbank AG, a member of UniCredit Group.

The debt facility matures on Dec. 31, 2015.

Interest is variable based on Libor plus 587.5 basis points, and the company may elect to fix the interest rate through an interest-rate swap.

Anatolia will be required to provide limited gold price protection during the initial ramp-up year of production of about 40,000 ounces of gold at an average strike price of $750 per ounce. It has already purchased 4,000 put options at a strike price of $800 per ounce.

There is no penalty for early repayment.

Proceeds will be applied toward development of the Copler Gold Project in Turkey.

"Along with internal sources, the Bayerische Hypo- und Vereinsbank debt facility fully funds Anatolia for expected Copler construction costs and other operating needs during development," president and chief executive office Edward Dowling said in a news release.

"Copler will be a world class gold mine with cash costs expected in the lowest quartile. Our strategy is to grow to the mid-tier ranks by leveraging the initial phase at Copler into additional production growth, advance other internal projects and consider strategic opportunities."

Cutfield Freeman & Co. Ltd. advised Anatolia on the transaction.

Anatolia is a Lakewood, Colo.-based gold, silver, copper and zinc mining company with projects in Turkey.

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