JOHANNESBURG (miningweekly.com) – Trans-Siberian Gold (TSG) subsidiary ZAO Trevozhnoye Zarevo (TZ) has secured a five-year $15-million facility to repay two existing loan facilities amounting to $14.8-million and provide additional funds for working capital and other corporate purposes.
TZ entered into the agreement with VTB Bank, subsequently materially improving the terms of its debt facilities and reducing the cost of debt, while maintaining flexibility for growth and development.
"We are very pleased to have materially improved the terms of our debt facilities. I am grateful for the hard work of our finance team who have successfully negotiated improved terms which reduces our cost of borrowing. We maintain a low level of gearing and look forward to working with VTB Bank,” said TSG CEO Dmitry Khilov on Tuesday.
The agreement held an 18-month capital repayment deferral, stipulating repayment of equal amounts on a quarterly basis, with the first repayment effective seven quarters after initial drawdown.
TSG owns the Asacha project in Far East Russia.