Press release from Marketwire
Teranga Finalizes Equipment Financing to Fund Future Production Growth
Monday, April 01, 2013
Teranga Finalizes Equipment Financing to Fund Future Production Growth06:00 EDT Monday, April 01, 2013
TORONTO, CANADA--(Marketwire - April 1, 2013) - Teranga Gold Corporation ("Teranga" or the "Company") (TSX:TGZ)(ASX:TGZ) today announced that it has entered into a $50 million Equipment Finance Facility with Macquarie Bank Limited ("Macquarie") (the "Equipment Facility"). The Equipment Facility replaces, in its entirety, the equipment lease facility that had previously been in place with Societé Generalé, which was assigned and novated to Macquarie. The use of proceeds will be put towards additional equipment for the Sabodala pit as well as the new equipment required for the Gora deposit that is currently being permitted. The Loan Facility bears interest of LIBOR plus a margin of 7.5 percent and is re-payable in equal installments over twenty-four (24) months from drawdown, with an availability period expiring on March 31, 2014.
Upon closing, $10.6 million will be assigned to the existing Societé Generalé facility, $12.1 million will be attributed to the purchase of the expanded mine fleet and $4.3 million will be drawn down in the second quarter when final delivery of this equipment is received. The balance of $23 million will be reserved for future drawn downs for purchases of mining equipment, as required, including Gora.
"The Equipment Facility strengthens our balance sheet, and provides security of future financing - on reasonable terms - to fund additional mobile equipment as the Company develops Gora. We expect to have production from Gora, our first satellite deposit, in 2014 which will be additive to our current Mine License production base of approximately 200,000 ounces annually as we target our first phase of growth to 250,000 to 350,000 ounces of annual production. This facility provides us with the ability to purchase the mobile equipment, required for Gora which will then be deployed to other growth opportunities," said Richard Young, President and CEO.
Teranga is a Canadian-based gold company listed on the Toronto Stock Exchange (TSX:TGZ) and Australian Securities Exchange (ASX:TGZ). Teranga is principally engaged in the production and sale of gold, as well as related activities such as exploration and mine development.
The Company's mission is to create value for all of its stakeholders through responsible mining. Its vision is to explore, discover and develop gold mines in West Africa, in accordance with the highest international standards, and to be a catalyst for sustainable economic, environmental and community development. All of its actions from exploration, through development, operations and closure will be based on the best available techniques.
This news release contains certain statements that constitute forward-looking information within the meaning of applicable securities laws ("forward-looking statements"). Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of Teranga, or developments in Teranga's business or in its industry, to differ materially from the anticipated results, performance, achievements or developments expressed or implied by such forward-looking statements. Forward-looking statements include all disclosure regarding possible events, conditions or results of operations that is based on assumptions about future economic conditions and courses of action. Forward-looking statements may also include, without limitation, any statement relating to future events, conditions or circumstances. Teranga cautions you not to place undue reliance upon any such forward-looking statements, which speak only as of the date they are made. The risks and uncertainties that may affect forward-looking statements include, among others: economic market conditions; and other risks detailed from time to time in Teranga's filings with Canadian provincial securities regulators. Forward-looking statements are based on management's current plans, estimates, projections, beliefs and opinions, and, except as required by law, Teranga does not undertake any obligation to update forward-looking statements should assumptions related to these plans, estimates, projections, beliefs and opinions change.
FOR FURTHER INFORMATION PLEASE CONTACT:
Teranga Gold Corporation
Vice-President, Investor & Stakeholder Relations