Further Advances Strategic Development Goals for the Yaramoko Gold Project
TORONTO, June 26, 2014 /PRNewswire/ - Roxgold Inc. (ROG: TSX.V) ("Roxgold" or the "Company") is pleased to announce that following a competitive selection process, it has executed a project finance mandate with Société Générale Corporate & Investment Banking ("Société Générale") and Credit Suisse AG ("Credit Suisse"), (collectively the "Banks") which will further the development of the Company's Yaramoko Gold Project in Burkina Faso. The Mandate sets forth a US$75 million senior project debt facility (the "Facility") with a targeted financial close in the fourth quarter of 2014.
"We are very pleased to announce this latest milestone in the development of the Yaramoko Gold Project," commented John Dorward, President and CEO. "The proposed Facility is expected to provide all of the debt required to finance Yaramoko and represents a significant step forward in the development of the project. The support demonstrated by Société Générale and Credit Suisse follows an initial due diligence process, and we are delighted to work in partnership with them on this aspect of our financing."
The Company retained Cutfield Freeman & Company as its independent financial advisor to assist with securing project financing in late 2013 and commenced its formal debt financing process in April 2014. A number of leading project finance banks and alternative financiers provided competitive proposals as part of this process.
Closure of the Facility is subject to customary internal approvals and completion of due diligence. The Facility is expected to encompass a hedging component of approximately 8.5% of Yaramoko's current reserves.
Société Générale has a long track record in arranging project finance in the resource sector with over 20 years of demonstrated experience. Through their involvement with project finance transactions for existing projects in West Africa and in Burkina Faso, where the Group owns a local bank, Société Générale is uniquely equipped to support Yaramoko's financing requirements.
Credit Suisse has extensive experience arranging and underwriting mining project finance transactions, having financed the construction of a number of projects both in Africa and globally. Credit Suisse has a dedicated loan financing team for African borrowers and has successfully funded several large loan facilities across Africa.
Roxgold is a gold exploration and development company with its key asset, the high grade, 100% owned Yaramoko Gold Project located in the Houndé greenstone region of Burkina Faso, West Africa. The Company is currently advancing Yaramoko's 55 Zone through permitting and, subject to making a positive construction decision, expects to commence development in Q4 2014. Roxgold trades on the TSX Venture Exchange under the symbol ROG.
"Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release."
This news release contains forward-looking information. Forward looking information contained in this new release includes, but is not limited to, statements with respect to: (i) the estimation of inferred and indicated mineral resources and probable mineral reserves; (ii) the success of exploration activities; (iii) the completion and timing of the environmental assessment process (iv) the results of the Feasibility Study including statements about future production, future operating and capital costs, the projected IRR, NPV, payback period, and production timelines for the 55 Zone on the Yaramoko permit.
These statements are based on information currently available to the Company and the Company provides no assurance that actual results will meet management's expectations. In certain cases, forward-looking information may be identified by such terms as "anticipates", "believes", "could", "estimates", "expects", "may", "shall", "will", or "would". Forward-looking information contained in this news release is based on certain factors and assumptions regarding, among other things, the estimation of mineral resources and mineral reserves, the realization of resource estimates and reserve estimates, gold metal prices, the timing and amount of future exploration and development expenditures, the estimation of initial and sustaining capital requirements, the estimation of labour and operating costs, the availability of necessary financing and materials to continue to explore and develop the Yaramoko project in the short and long-term, the progress of exploration and development activities, the receipt of necessary regulatory approvals, the completion of the environmental assessment process, and assumptions with respect to currency fluctuations, environmental risks, title disputes or claims, and other similar matters. While the Company considers these assumptions to be reasonable based on information currently available to it, they may prove to be incorrect.
Forward looking information involves 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 information. Such factors include risks inherent in the exploration and development of mineral deposits, including risks relating to changes in project parameters as plans continue to be redefined including the possibility that mining operations may not commence at the Yaramoko project, risks relating to variations in mineral resources and mineral reserves, grade or recovery rates resulting from current exploration and development activities, risks relating to changes in gold prices and the worldwide demand for and supply of gold, risks related to increased competition in the mining industry generally, risks related to current global financial conditions, uncertainties inherent in the estimation of mineral resources and mineral reserves, access and supply risks, reliance on key personnel, operational risks inherent in the conduct of mining activities, including the risk of accidents, labour disputes, increases in capital and operating costs and the risk of delays or increased costs that might be encountered during the development process, regulatory risks, including risks relating to the acquisition of the necessary licenses and permits, financing, capitalization and liquidity risks, including the risk that the financing necessary to fund the exploration and development activities at the Yaramoko project may not be available on satisfactory terms, or at all, risks related to disputes concerning property titles and interest, and environmental risks. Please refer to the Company's Short Form Prospectus dated March 17, 2014 filed on SEDAR at www.sedar.com for political, environmental or other risks that could materially affect the development of mineral resources and mineral reserves. This list is not exhaustive of the factors that may affect any of the Company's forward-looking information. These and other factors should be considered carefully and readers should not place undue reliance on the Company's forward-looking information. The Company does not undertake to update any forward-looking information that may be made from time to time by the Company or on its behalf, except in accordance with applicable securities laws.
SOURCE Roxgold Inc.