Closing of Romarco’s $200m debt agreement extended by 30 days
TORONTO (miningweekly.com) – Caterpillar Financial Services Corporation, Macquarie Bank and Societe Generale Corporate & Investment Banking have informed TSX-listed project developer Romarco Minerals that it was necessary to extend the closure of a binding commitment for a $200-million senior secured project debt facility by 30 days to April 2.
The extension would allow the lenders to finalise documentation, including a final review of the financial model that had recently been updated, based on an updated technical report filed in December.
All other terms of the commitment remained the same.
After receiving all necessary permits to start construction at its flagship Haile gold project, in South Carolina, Romarco, in December, reported that it had updated the project’s economics, resulting in a 72% boost in the project’s after-tax net present value (NPV).
The updated report was based on the company’s February 2011 feasibility study but, given the passage of time from the original economic analysis, the company undertook confirmatory work on the project economics.
Using a 5% discount rate, the after-tax NPV rose from $191-million to $329-million and the internal rate of return increased from 15.7% to 20.1%.
While most economic metrics remained constant, the assumed gold price was adjusted higher to $1 250/oz, from $950/oz.
The initial cost of the project rose to $333-million, including a $17-million contingency, of which $31-million had already been paid. This was higher than the initial capital estimate of $275-million, including a $30-million contingency.
Comments
Research Reports
Projects
Latest Multimedia
Latest News
Showroom
ESAB South Arica, the leading supplier of high-end welding and cutting products to the Southern African industrial market is based in...
VISIT SHOWROOM
Weir Minerals Europe, Middle East and Africa is a global supplier of excellent minerals solutions, including pumps, valves, hydrocyclones,...
VISIT SHOWROOM
Press Office
Announcements
What's On
Subscribe to improve your user experience...
Option 1 (equivalent of R125 a month):
Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format
Option 2 (equivalent of R375 a month):
All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors
including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.
Already a subscriber?
Forgotten your password?
Receive weekly copy of Creamer Media's Engineering News & Mining Weekly magazine (print copy for those in South Africa and e-magazine for those outside of South Africa)
➕
Recieve daily email newsletters
➕
Access to full search results
➕
Access archive of magazine back copies
➕
Access to Projects in Progress
➕
Access to ONE Research Report of your choice in PDF format
RESEARCH CHANNEL AFRICA
R4500 (equivalent of R375 a month)
SUBSCRIBEAll benefits from Option 1
➕
Access to Creamer Media's Research Channel Africa for ALL Research Reports on various industrial and mining sectors, in PDF format, including on:
Electricity
➕
Water
➕
Energy Transition
➕
Hydrogen
➕
Roads, Rail and Ports
➕
Coal
➕
Gold
➕
Platinum
➕
Battery Metals
➕
etc.
Receive all benefits from Option 1 or Option 2 delivered to numerous people at your company
➕
Multiple User names and Passwords for simultaneous log-ins
➕
Intranet integration access to all in your organisation
