Roxgold (TSXV: ROG) has significantly de-risked its Yaramoko project this week with a US$75 million debt financing package from several European banks and a US$15 million equity investment from its underground mining contractor in Africa that will leave the company nearly fully financed to build the 100% owned gold project and break ground in the fourth quarter of this year.
On Monday Roxgold awarded a four-year mining services contract to African Underground Mining Services (AUMS). Under the agreement AUMS will make an initial US$5 million investment in the junior. The contract also gives Roxgold the option to issue another US$10 million of its shares in exchange for pre-production underground development work.
On Tuesday Roxgold announced it had signed a commitment letter for a US$75 million senior project debt facility with Societe Generale Corporate & Investment Banking and Credit Suisse AG. The facility also includes a US$20 million equity funded cost overrun account and a hedging component (65,000 oz of gold, or about 8.5% of Yaramoko’s current reserves over the life of the six-year loan).
Read the complete article at NorthernMiner.com/news/roxgold