Victoria Gold (TSX: VGCX) says an agreement with a syndicate of banks for a secured US$200-million debt facility will cut carrying costs by about 50% in 2021. The credit facility consists of a US$100-million term loan and a US$100-million revolving facility.
The loan was used to repay the company’s previously outstanding project finance facility, which included senior and subordinated debt that was used to build Victoria Gold’s Eagle gold mine in the Yukon.
The Eagle mine, 375 km north of Whitehorse, became the Yukon’s newest gold mine when it reached commercial production in July 2020. Eagle is forecast to produce an average of 210,000 oz. gold a year over 10 years.
The loan facility has an interest rate ranging from 3% to 4% over LIBOR, or U.S. dollar base rate loans, with an interest rate ranging from 2% to 3% over the U.S. base rate, each based on the company’s leverage ratio and other terms and conditions.
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