Guyana Goldfields secures full financing for Aurora mine

Sep 04, 2014 Sports

The International Finance Corporation (IFC), a member of the World Bank Group, has completed a US$185M financing package for the construction and development of Guyana Goldfield’s Aurora gold mine, located 170 kilometers west of Georgetown.
The project, according to the company yesterday, is expected to become one of the largest contributors to Guyana’s tax base and generate up to 900 jobs during peak construction. It will also be the country’s next large scale producer, following the departure of Omai Gold Mines a few years ago.

President Donald Ramotar during a recent visit to the Region Seven facility.

Since becoming a shareholder in the company in 2006, IFC has helped Guyana Goldfields establish an integrated environmental, health, safety, and social management system in line with international best practices.
The financing package consists of a US$45M loan from IFC’s account and a US$33.6M loan from IFC’s Managed Co-Lending Portfolio Programme, a new syndications platform that offers institutional investors the ability to passively participate in IFC’s future senior loan portfolio.
In addition, IFC coordinated US$106.4 million in loans from Export Development Canada, Caterpillar Financial Services Corporation, ING Capital LLC, and the Bank of Nova Scotia.
“IFC has been a strong partner to Guyana Goldfields for the last eight years. Their financing and global experience on environmental and social management has been invaluable as our project has evolved. This financing package demonstrates their strong commitment to the project’s sustainable development and to Guyana”, said Scott A. Caldwell, President & CEO of Guyana Goldfields.
“Guyana Goldfields will be one of the first project financings in Guyana, setting a precedent and positive example for investors across sectors,” said Jean Philippe Prosper, IFC Vice President for Latin America and the Caribbean and Sub-Saharan Africa. “We are excited to demonstrate that with strong partners and the patience of long-term investors we can help bring tangible benefits to the Guyanese people.”
The Canadian company said that the Government of Guyana is actively promoting the development of commercial mining projects, such as Aurora, that follow international standards for safety and environmental and social management. IFC is currently working with the company and its contractors on a strategy to continue and enhance its sourcing of supplies and services from local companies.
Guyana Goldfields Inc. is a Canadian based company, focused on the exploration and development of gold deposits in Guyana, South America. GGI is focused on the construction and development of the Aurora Gold Project scheduled for commercial production in mid-2015. The Aurora Gold Project has a total gold resource of 6.54 million ounces in the measured and indicated categories. With the completion of the Facility, the development of the Project is now fully financed, subject to the terms and conditions of the Facility.
The company quoted Robert Persaud, Minister of Natural Resources and the Environment for Guyana, as saying that the “Government of Guyana congratulates Guyana Goldfields Inc. in securing full financing for the wholly owned Aurora Gold Project. This level of investment from a large scale mining operation is important to the growth and development of the Guyanese economy.”
Persaud said that the benefits for Guyana from this project such as local employment, contribution to national wealth, training and community development cannot be over-emphasized. “In addition, Guyana’s level of gold declaration is expected to double with the anticipated output from the Aurora project.”
Scott A. Caldwell, President and CEO, said that the Aurora Gold Project remains on schedule to achieve commercial production in mid-2015.
Gold mining has seen a rush as price rose to record levels in recent years to over US$1,800. Though it has dipped now, interest has still remained high with significant investments by both local and foreign entities.
Last year, gold production reached record levels