Seeking Alpha

Proactive Investor's  Instablog

Proactive Investor
Send Message
Proactiveinvestors is a leading multimedia news organization, investor portal and events management business with offices in New York, Sydney, Toronto and London. Proactiveinvestors operates five financial websites in four languages providing breaking news, comment and analysis on hundreds of... More
My company:
Proactiveinvestors
My blog:
Proactiveinvestors
  • Aureus Mining Expects Final Approval For Project Finance This Month 0 comments
    Sep 12, 2013 5:45 PM

    Junior gold firm Aureus Mining (TSE:AUE) (LON:AUE) has updated investors on its pending project financing for the New Liberty mine development in Liberia, as it has had to put back the first gold pour.

    The company says a proposed US$88mln debt facility with NedBank and Rand Merchant Bank, a division of FirstRand Bank, has now received approval from credit committees at the respective banks.

    Approval from the Export Credit Insurance Corporation of South Africa is still required to close the financing, though Aureus said this is expected by the end of the month.

    Aureus has also mandated a US$12mln subordinated loan from RMB Resources, a division of FirstRand Bank.

    The company warned that due to short term delays in finalizing the financing it has held back on orders for some plant equipment and as a result the first gold pour has been put back to the end of the first quarter of 2015.

    "Obtaining credit committee approvals for the debt facilities for the New Liberty project provides Aureus with the green light to build Liberia's first ever commercial gold mine," said chief executive David Reading.

    "The overall funding cost, excluding the warrants, of approximately 6% p.a. is extremely competitive in the current market and the hedge policy commitment - contemplated to be on up to 100,000 ounces - allows the company flexibility on when to lock-in gold price protection at a prudent level.

    "Obtaining credit committee approvals is a key milestone and an achievement of one of our strategic goals for 2013.

    "The subordinated debt mandate further strengthens the significant backing Aureus has, as the company rapidly continues its strategy of harnessing the significant upside of our Liberian gold assets, not only at New Liberty, but also the significant gold discoveries within our mining license, including the Weaju and Ndablama deposits."

    "We look forward to working with our key partners at Nedbank and RMB to complete the documentation for the facilities by December 2014 and thank them for their support."

    Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

Back To Proactive Investor's Instablog HomePage »

Instablogs are blogs which are instantly set up and networked within the Seeking Alpha community. Instablog posts are not selected, edited or screened by Seeking Alpha editors, in contrast to contributors' articles.

Comments (0)
Track new comments
Be the first to comment
Full index of posts »
Latest Followers

StockTalks

More »

Latest Comments


Posts by Themes
Instablogs are Seeking Alpha's free blogging platform customized for finance, with instant set up and exposure to millions of readers interested in the financial markets. Publish your own instablog in minutes.