Atlantic Gold gets commitment for C$150 million three-year revolver

By Marisa Wong

Morgantown, W.Va., July 3 – Atlantic Gold Corp. announced it executed a credit approved commitment letter for a fully underwritten C$150 million senior secured revolving credit facility with National Bank of Canada.

The credit facility will be used to repay the company’s existing project loan facility and provides additional financing capacity for development and growth opportunities, according to a press release.

The roughly C$110 million balance of the existing project loan facility will be repaid by partial drawdown of the new revolving credit facility.

The revolver has a three-year term with a customary annual extension mechanism and has no mandatory amortization.

The interest rate will vary depending on the type of borrowing and the company’s total leverage ratio; however, interest costs are expected to be lower than the previous project loan facility.

Completion of the revolving facility will be subject to completion of project finance documentation. Closing is expected to occur before the end of July.

The company said that total cash balances at June 30 were about C$33 million, which together with the undrawn revolver provides for a strong balance sheet and working capital position for the next few years.

The gold explorer is based in Vancouver, B.C.

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