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Sulliden enters into US$125 million project finance mandate with Credit Suisse and Barclays Bank for its Shahuindo Project

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TORONTO, Nov. 8, 2012 /PRNewswire/ - Sulliden Gold Corporation Ltd. ("Sulliden", or the "Company") (TSX:SUE; BVL:SUE; OTCQX:SDDDF) has entered into a mandate letter with Credit Suisse AG and Barclays Bank PLC to arrange a limited recourse project finance facility of up to US$125 million for the construction and development of the gold and silver Shahuindo Project in Peru.  The Company has approved indicative terms and conditions for the facility, which would bear interest rate of LIBOR plus 4.85% pre-completion, and LIBOR plus 4.35% post-completion.

Peter Tagliamonte, President and CEO of Sulliden, commented "We are very pleased with the opportunity to move forward with Credit Suisse and Barclays as our financing partners to develop the Shahuindo project in a minimally dilutive manner. A $125 million debt facility would fund a significant portion of the capital required for the first phase of the Shahuindo mine. The robust nature of our project economics is clearly demonstrated by the commitment of our lenders to this facility and we look forward to completing this transaction.  This marks another important de-risking event for the Shahuindo Project as we move towards becoming a gold producer."

On September 26, 2012, Sulliden announced the completion of a positive Feasibility Study for the initial phase of its gold and silver Shahuindo Project located in Peru that highlighted a straightforward shallow open pit mine with a heap leach and conventional ADR plant for precious metal recovery. The project is projected to require initial capital of $131.8 million that will support a mining rate of 3.65 million tonnes per year, producing approximately 90,000 gold equivalent ounces per year at an average cash operating cost of $552 per ounce.

The Company and the Lenders will now proceed with project due diligence and documentation with a target of a financial close expected in the first quarter of 2013.  Closure of the facility is subject to receipt of internal credit approvals, provision of adequate due diligence and acceptable documentation.  The project finance facility will also include a gold price risk management facility to be agreed between the parties. The facility would encompass approximately 20% of life of mine ounces produced and the Company would have full exposure to the gold price on the balance.  The facility can take a number of forms regarding risk management; the Company is currently discussing a cashless collar of deep out of the money puts and calls to provide the maximize upside to the ounces within the facility.

Qualified Person

Joe Milbourne, Vice President of Operations and Technical Services for Sulliden is the Company's designated Qualified Person as defined under National Instrument 43-101 for the purposes of the Feasibility Study.  Mr. Milbourne have reviewed and approved the scientific and technical contents of this press release.

About Sulliden

Sulliden Gold Corporation Ltd. is a Canadian precious metals company focused on the exploration and development of its wholly owned gold and silver Shahuindo Project, located in a prolific gold producing district in northern Peru.  Sulliden is listed on the Toronto (TSX) and Lima (BVL) stock exchanges under the symbol "SUE", as well as the premier tier of the U.S. Over-the-Counter (OTC) market (OTCQX) under the symbol "SDDDF".  For more information about Sulliden, please visit www.sulliden.com.

On behalf of Sulliden Gold Corporation Ltd.:

Peter Tagliamonte                               Stan Bharti
President and CEO                               Chairman

Caution regarding forward-looking information:
This press release contains "forward looking information" within the meaning of applicable Canadian securities legislation. Forward looking information includes without limitation, statements regarding the non-binding indicative term sheet and the likelihood and timing of entering into a binding commitment and closing.. Results of the feasibility study, next steps for the property, progress in development of mineral properties, projected capital and operating expenses, future metal prices, the future financial or operating performance of the Company and anticipated production schedule. Generally, forward looking information can be identified by the use of forward-looking terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or 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". Estimates underlying the results of the feasibility study arise from engineering, geological and costing work of KCA, MDA and the Company. See the technical report relating to the feasibility study for a description of all relevant estimates, assumptions and parameters. Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed or implied by such forward-looking information, including but not limited to: general business, economic, competitive, geopolitical and social uncertainties; the actual results of current exploration activities; other risks of the mining industry and the risks described in the annual information form of the Company. Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward looking information. The Company does not undertake to update any forward-looking information, except in accordance with applicable securities laws. 

 

SOURCE Sulliden Gold Corporation Ltd.



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