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Guyana Goldfields signs US$165M financing agreement
Guyana’s next large-scale gold mining company, Guyana Goldfields, has moved closer to securing a significant tranche of financing to construct its facilities in Cuyuni/Mazaruni area, Region Seven.
According to the firm, it has signed a mandate letter with the International Finance Corporate (IFC), of the World Bank Group, to lead a senior debt facility in the amount of US$165M, of which US$40M is reserved to fund cost overruns. IFC currently has a 5.5% equity stake in the company.
Guyana Goldfields Inc. has announced that it is moving closer to finding financing for the construction of its Cuyuni mine site in Region Seven.
The debt facility will be used for the development, construction and working capital requirements of the Aurora Gold Project and will fully fund the remaining capital required to achieve commercial production. IFC has provided indicative financial terms where it will lead the coordination of the overall debt syndicate with other commercial banks and multilateral and development institutions. IFC potentially will contribute up to US$65M.
Due diligence is proceeding and the completion of the transaction is expected in the second calendar quarter of 2014.
Scott Caldwell, President and CEO states, “This is an extremely important development in the advancement of the Aurora Gold Project. The support of IFC as a shareholder since 2006 is a strong vote of confidence and reaffirms both the merits of the project and GGI’s execution ability. We will be working hard to satisfy the banking syndicate’s indicative financial terms, to achieve drawdown as soon as possible.”
Guyana Goldfields Inc. is a Canadian-based company, focused on the exploration and development of gold deposits in Guyana. The company is focused on the construction and development of the Aurora Gold Project scheduled for initial production in early 2015. The project is designed to produce 3.29 million ounces of gold, averaging 194,000 ounces per year, over an initial 17-year mine life.
The company also said it holds a significant portfolio of attractive exploration properties and currently holds cash balances of US$112M as of September 12.
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