PERTH (miningweekly.com) – Gold miner Evolution Mining has refinanced its A$200-million corporate loan facility, rolling over the outstanding debt of A$126.8-million, while also securing a A$200-million senior secured corporate revolving credit facility with a syndicate of lenders.

The new credit facility would have a A$100-million accordion provision, over a three-year term.

The ASX-listed major told shareholders on Monday that the new credit facility would act as a line of credit, allowing the company to draw-down funds as required.

With the rollover of the outstanding debt amount from the previous facility, this new facility would effectively be drawn to A$126.8-million.

Evolution noted that the rates and fees under the new facility have been negotiated at materially better terms than the previous facility and equate to a saving of approximately A$10-million over the three year term of the new facility, based on the outstanding debt amount of A$126.8-million.

The accordion provision is a new feature and allows Evolution to request an additional A$100-million to fund acquisition opportunities if and when they arise.

“We are very pleased that we have been able to secure such a strong outcome in refinancing our debt facility. It is a reflection of the participating bank’s confidence that we will continue to successfully navigate the considerable headwinds that our industry is currently facing,” said Evolution finance director and CFO Lawrie Conway.

“This facility strengthens our balance sheet and lowers our cost of debt while also providing additional capacity to pursue growth opportunities”

In parallel to the refinancing, and with the Australian dollar gold price trading near eight-month highs, Evolution has forward sold an additional 225 000 oz of gold with scheduled deliveries from April 2016, through to June 2018.

Evolution now has 347 730 oz forward sold at an average price of A$1 541/oz out to June 2018, representing less than 25% of expected gold production over that period.