VANCOUVER, Jan. 18 /PRNewswire-FirstCall/ - Luna Gold Corp. (TSXV-LGC) ("Luna" or the "Company") is pleased to announce that it has completed the two-tranche, senior secured, project debt facility (the "Facility") in the amount of up to US$15 million with RMB Resources Inc, the offer of which was previously announced on October 15, 2009.
Tranche 1 is in the amount of US$7.5 million and is available for the completion of the Aurizona project. Tranche 2 is in the amount of a further US$7.5 million and is available for working capital purposes while the operation ramps up to full production capacity and steady earnings inflow. Both tranches of the Facility will bear interest at LIBOR plus 7.5% and are to be fully repaid by December 31, 2012.
On the development side, Luna is pleased to confirm that the 69kV line for the Aurizona project has been approved for construction by CEMAR, the state power utility.
Luna's CEO, Jim Bahan, comments, "The completion of this Facility is timely given the current improvement in the US$ to Real exchange rate. Further to our release of January 12th, I am pleased also to confirm that the 69 kV line for the project has been approved for construction by CEMAR, the state power utility, and that the stand-by generators, which will be used to commission the process plant, have arrived at the port of Itaqui, Maranhao."
About Luna Gold Corp.
Luna is a mineral exploration and development company engaged in the acquisition, exploration, and development of gold resources and advanced stage gold exploration projects in Brazil. The Company is currently developing its Aurizona gold project in Maranhao, Brazil.
On behalf of the Board of Directors
LUNA GOLD CORP.
Jim Bahan - CEO
Neither the 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.
SOURCE Luna Gold Corp.