Macquarie Bank provided a senior secured term loan facility of $40 million to Canada-based gold mine developer Battle North Gold Corporation to fund the construction of the Bateman Gold Project in Red Lake, ON. The proceeds of the facility, together with cash currently on Battle North’s balance sheet, is expected to fully fund the project to commercial production.
The credit facility remains subject to certain customary conditions precedent and to negotiation and execution of customary definitive documentation, including a credit agreement and related security documents, which Battle North and Macquarie anticipate will be completed by end of Q1/21. The facility has a five-year term, ending on March 31, 2026. The facility has an interest rate of LIBOR plus 5.25% before project completion and then of LIBOR plus 4.25% after project completion.
Cutfield Freeman & Co. advised Battle North on the transaction and Cassels Brock & Blackwell acted as legal counsel.
“Today’s announcement is a major milestone for the company and for the community of Red Lake. The credit facility, along with our existing cash balance, are expected to provide us with all the funding we require to complete the construction of the Bateman Gold Project. We believe 2021 will be a transformational year for the company as we look, subject to board approval, to complete construction and realize first production from the Bateman Gold Mine. Along with our Red Lake Regional Exploration and String of Pearls drilling programs throughout 2021, it should make for an exciting year,” George Ogilvie, P.Eng., CEO and president of Battle North, said. “The company is pleased to welcome Macquarie, a recognized global project finance bank in the mining sector, as one of its key stakeholders. We would also like to thank our advisors, Cutfield Freeman & Co. (financial advisor) and Cassels Brock & Blackwell (legal counsel), for their valuable input throughout this process.”