SEMAFO entered into a commitment letter with Macquarie Bank to increase its credit facility from $90 million to $120 million.

The original facility, arranged by Macquarie, was completed in March 2014 by a syndicate of underwriters led by Clarus Securities and included BMO Capital Markets, CIBC World Markets, Paradigm Capital and Scotia Capital.

Amendments to the existing facility also include:

  • Incremental $60 million to be drawn down by June 30, 2017 ($30 million repayment due March 3, 2016)
  • LIBOR + 4.75% per annum
  • Quarterly repayments of $15 million, from first quarter of 2019 to fourth quarter of 2020

Closing of the amended facility is anticipated on or about March 31, 2016 and drawdown of the incremental $60 million is subject to conditions precedent customary in a transaction of this nature.

Canadian-based SEMAFO is a mining company with gold production and exploration activities in West Africa.