Guyana Goldfields Signs Mandate Letter for US$165 Million Debt Facility with the International Finance Corporation
TORONTO, Nov. 5, 2013 /CNW/ - Guyana Goldfields Inc. ("GGI" or "the Company") (TSX: GUY) is pleased to announce that 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$165 Million, of which US$40 Million is reserved to fund cost overruns. IFC currently has a 5.5% equity stake in the Company.
The debt facility will be used for the development, construction and working capital requirements of the Aurora Gold Project ("the Project") and will fully fund the remaining capital required to achieve commercial production. IFC has provided indicative financial terms whereby IFC will lead the coordination of the overall debt syndicate with other commercial banks and multi-lateral and development institutions, with IFC potentially contributing up to US$65 Million. There are no anticipated gold hedging provisions foreseen as part of the facility. IFC's mandate to arrange financing is subject to satisfactory technical, social, legal and environmental due diligence, execution of acceptable terms, and documentation and obtaining final credit, regulatory and board approvals.
Due diligence is proceeding and the completion of the transaction is expected in the second calendar quarter of 2014. The Company is closely monitoring its expenditures and commitments for the Project in order to rationally synchronize spending with the debt financing timeframe.
Scott Caldwell, President & 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."
IFC, a member of the World Bank Group, creates opportunity for people to escape poverty and improve their lives. IFC fosters sustainable economic growth in developing countries by supporting private sector development, mobilizing private capital, and providing advisory and risk mitigation services to businesses and governments. For more information, visit www.ifc.org.
About Guyana Goldfields Inc.
Guyana Goldfields Inc. is a Canadian based Company, focused on the exploration and development of gold deposits in Guyana, South America. 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 Aurora Gold Project has a total gold resource of 6.54 million ounces in the measured and indicated categories (62.83 million tonnes at a grade of 3.24 g/t) as well as an additional 1.82 million ounces in the inferred category (16.93 million tonnes at a grade of 3.34 g/t). The Company also holds a significant portfolio of attractive exploration properties and currently holds cash balances of US$112 Million as of September 12, 2013.
This news release contains "forward-looking information" which may include, but is not limited to, statements with respect to the estimation of mineral resources. Often, but not always, forward-looking statements can be identified by the use of words and phrases such as "plans," "expects," "is expected," "budget," "scheduled," "estimates," "forecasts," "intends," "anticipates," or "believes" or variations (including negative variations) of such words and phrases, or state that certain actions, events or results "may," "could," "would," "might" or "will" be taken, occur or be achieved. Forward-looking statements are based on the opinions and estimates of management as of the date such statements are made and are based on various assumptions.
Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Such factors include, among others, the receipt of applicable regulatory approvals, risks related to the debt facility proceeding, risks related to the final findings and assumptions set forth in the Technical Report, general business, economic, competitive, political and social uncertainties; the actual results of exploration activities; changes in project parameters as plans continue to be refined; accidents, labour disputes and other risks of the mining industry; political instability; delays in obtaining governmental approvals or financing or in the completion of development or construction activities, as well as those factors discussed in the section entitled "Risk Factors" in the Company's annual information form. Although the Company has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward looking statements, there may be other factors that cause actions, events or results to differ from those anticipated, estimated or intended. Forward-looking statements contained herein are made as of the date of this news release and the Company disclaims any obligation to update any forward-looking statements, whether as a result of new information, future events or results, except as may be required by applicable securities laws. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements.
SOURCE Guyana Goldfields Inc.