GOLD: Centerra rounds up $150M for Oksut project

TURKEY – Toronto-based Centerra Gold has secured a term loan for US$150 million underwritten by UniCredit Bank AG. The money will finance most of the construction, development and operation of the Oksut gold mine and infrastructure in the Kayseri region. The loan carries an interest rate of LIBOR plus 2.65% to 2.95% with no gold hedging requirements. The term is for 5.75 years. Centerra’s Oksut project has a construction capital requirement of US221 million to build an open pit and heap leach operation. The project will produce 155,000 oz of gold annually in the first four years of operation. The all-in sustaining cost (including taxes) will be US$777 per oz. The after tax net present value is US$242 million (8% discount) and the internal rate of return is anticipated to be 42.5%. The probable reserve contains 1.16 million oz of gold in 26.14 million tonnes of ore grading 1.4 g/t Au. The measured and indicated resource is 6.79 million tonnes grading 0.7 g/t and containing 157,000 oz of gold. The inferred resource totals 2.38 million tonnes at 0.8 g/t and containing 64,000 oz of gold. Centerra has posted the 2015 Oksut technical report at www.CenterraGold.com.