Atlantic Gold signed a commitment letter and supporting term sheet with Cat Financial. Cat Financial will underwrite up to $20 million in mining fleet equipment financing to be supplied by Atlantic Tractors & Equipment for the Atlantic Gold’s Moose River Consolidated Project.

The equipment facility will be utilized towards the acquisition cost of the primary mining fleet and ancillary equipment. Deliveries of the mining fleet are expected to begin arriving on site in mid-2016 and be completed in late 2017.

The term of the equipment facility will be five years and will be secured by the mining fleet. Title to the mining fleet will transfer to the company at the completion of the equipment facility.

Closing of the transaction is anticipated to occur in the coming weeks and is subject to customary conditions including completion of final documentation for this equipment facility, as well as the project loan facility between the Atlantic Gold, Cat Financial and Macquarie Bank.

“Atlantic is pleased to engage in another transaction with Cat Financial in respect of an equipment finance facility that will facilitate the purchase of a first-class mining fleet for our MRC Project,” said Steven Dean, chairman and CEO of Atlantic Gold. “The result of our negotiations and work with Cat Financial is a competitive approach with benefits beyond the contract mining assumptions in our August 2015 feasibility study. The company is looking forward to the completion of final documentation to formalize the equipment financing in due course.”