SEMAFO executed the previously announced $120 million credit facility with Macquarie Bank. The facility is repayable in quarterly repayments of $15 million, from Q1/2019 to Q4/2020. Proceeds from the facility will be used for the construction of the Natougou project located in Burkina Faso.

The facility, which bears interest at LIBOR+4.75%, replaces the company’s previous $90 million credit facility, $30 million of which was repaid on March 3, 2016.

Under the terms of the facility, the incremental $60 million will be drawn down by June 30, 2017. Drawdown of the new advance, and the extension of the maturity of the facility from March 2018 to December 2020, are subject to satisfaction of certain conditions precedent customary in a transaction of this nature, including establishment of a $40 million restricted cash deposit, receipt of permits, signing of a mining convention and completion of a due diligence update by Macquarie. The restricted cash deposit is reduced to $15 million once commercial production at Natougou is achieved and certain other conditions are satisfied.

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