Press release from Marketwire
Astur Gold Closes C$10 Million Loan Facility With RMB Resources
Thursday, June 06, 2013
Astur Gold Closes C$10 Million Loan Facility With RMB Resources08:00 EDT Thursday, June 06, 2013
VANCOUVER, BRITISH COLUMBIA--(Marketwired - June 6, 2013) - Astur Gold Corp. (TSX VENTURE:AST)(FRANKFURT:CDC) ("Astur Gold" or the "Company") is pleased to announce that it has closed the previously announced C$10 million loan facility ("Facility") for its wholly owned subsidiary, Exploraciones Mineras del Cantábrico ("EMC") with RMB Resources Limited ("RMB"), the resource financing division of the FirstRand Group of South Africa. The Facility will be used to fund the completion of a Definitive Feasibility Study ("DFS") on the Salave Gold Project, fund initial mine development, and to provide for general corporate working capital purposes.
"Given the challenging commodity and equity markets, we are pleased to close this this financing with RMB and forge ahead with development of the Salave Gold Project. The Facility reflects RMB's confidence in our management team, gold fundamentals, and our production plans going forward," stated Astur Gold President & CEO Cary Pinkowski.
Loan Facility Terms:
- 3 year term, priced at LIBOR plus 6.0% per annum;
- Issuance of 5 million warrants, which will entitle RMB to purchase common shares of Astur Gold for 36 months at an exercise price of $0.62;
- RMB's security package includes a first ranking charge over the Salave Gold Project and a pledge of the securities of EMC;
- The Facility is subject to customary convents, conditions, and events of defaults.
With funding now in place, Astur Gold has commenced its associated studies for the DFS. The Company is also in the process of engaging key personnel and intends to issue a technical update in the coming weeks.
ABOUT RMB RESOURCES
RMB Resources is the resource financing division of the FirstRand Group, which is one of South Africa's largest financial institutions. RMB specializes in providing equity- and debt-financing solutions for small to mid-tier resource companies globally. RMB Resources provides debt funding through conventional project financing, commodity pre-paid forward financing as well as senior, subordinated, standby, and bridge financing. Staffed with experienced mining executives, RMB Resources operates from its offices in Sydney, Melbourne, London, Denver, and New York.
ABOUT ASTUR GOLD
Astur Gold is developing its 100% owned Salave Gold Project in Asturias, northern Spain, which is one of the largest undeveloped gold deposits in Western Europe. The Company received approval for an underground mine from the Commission for Environmental Affairs of the Principality of Asturias in November 2012 and is completing additional requirements for the processing plant, water discharge, and tailings licenses. The Company is working to build a partnership with the people of Asturias to generate sustainable economic benefits for the region while balancing the needs of environmental protection and social community development.
ON BEHALF OF THE BOARD
Cary Pinkowski, Chief Executive Officer, President and Director
Mineral resources that are not mineral reserves do not have demonstrated economic viability. This document contains certain forward looking statements which involve known and unknown risks, delays and uncertainties not under the Company's control which may cause actual results, performance or achievements of the Company to be materially different from the results, performance or expectation implied by these forward looking statements.
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Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.Contact Information:
Astur Gold Corp.
#300-1055 West Hastings Street, Vancouver, B.C., V6E 2E9