GOLD: Guyana Goldfields raises $185M for Aurora project

GUYANA – Guyana Goldfields of Toronto has signed a credit agreement that gives it US$185 million with which to complete its Aurora gold mine on the Cuyuni River. The project is now fully funded.

The loan will consist of two tranches, US$160 million followed by an overrun facility of US$25 million, repayable over a maximum of eight years. The first tranche carries a three-month LIBOR plus 5.11% rate. Any funds advanced under the second tranche will carry the same interest plus 0.5%. Guyana completed a recent US$33 million private placement as required for release of the first tranche, and the first drawdown is expected this month.

The Aurora project contains 62.83 million measured and indicated tonnes grading 3.24 g/t Au containing 6.54 million oz of gold, plus 16.93 million inferred tonnes grading 3.34 g/t Au containing 1.82 million oz of gold. Average annual gold output is expected to be 194,000 oz over the 17-year mine life.

More details are posted at GuyGold.com.