Daily News: July 31, 2017

BNP Paribas Provides $220MM Facility for Victoria Gold

BNP Paribas will underwrite 100% of the planned $220 million, senior secured project finance facility for Victoria Gold.

As a result of BNPP’s underwriting commitment, syndication of the loan facility is neither a condition to closing nor a condition to funding.

“We look forward to continuing to work with BNPP through the construction and operation of the Eagle Gold Mine. This fully underwritten commitment is the result of a rigorous due diligence program undertaken by BNPP and their independent engineer, Roscoe Postle Associates and represents additional third-party validation underscoring the exceptional quality of the Eagle Gold project,” commented John McConnell, president & CEO. “The Loan Facility with BNPP provides the majority of the required project funding and leaves the Company with flexibility to source the remaining capital.”

The terms of the loan include:

  • tenor of 6.5 years
  • annual interest rate of LIBOR +4.50% pre-completion, falling to LIBOR +4.00% post completion

Prior to closing of the loan facility, the company will be required to fully finance the construction of the Eagle Gold Mine and other related cash outflows including sustaining capital in the 1st year of production, working capital and interest and financing fees. Closing of the loan remains subject to the completion and execution of definitive loan documentation.

In connection with the Loan Facility, the company is working with Auramet International as financial advisor and Cassels Brock as legal counsel.