Romarco Minerals president and CEO Diane Garrett
Photo by: Romarco Minerals
TORONTO (miningweekly.com) – TSX-listed Romarco Minerals on Tuesday said it had signed a $200-million project financing mandate letter with a syndicate of three international financial institutions, including Caterpillar Financial Services, Macquarie Bank and Societe Generale Corporate & Investment Banking.
The senior-secured-finance facility signalled that the company was confident in receiving a positive permitting decision for its 100%-owned Haile gold project, in South Carolina.
“We are pleased with the significant progress in Haile's permitting process, which allows us to further advance the various forms of financing alternatives we have been pursuing,” president and CEO Diane Garrett said.
The mandate letter did not provide for mandatory gold hedging.
Toronto-based Romarco said closing the debt facility was subject to its internal approvals, due diligence, lender credit approvals, permit approvals and documentation.
A commitment letter would be signed in the third quarter.
The company also said it was reviewing various other sources of financing to provide the balance of the funds for building the $275-million project. These may include equity, debt or other capital market transactions.
The company was being advised by Cutfield Freeman & Co and Shearman & Sterling. The lenders were being advised by Allen & Overy.
As at June 30, the company's cash position was about $32.2-million.