PERTH (miningweekly.com) – Gold miner Resolute Mining has secured a new, flexible low-cost syndicated loan facility of up to $300-million to refinance its existing debt.
The Australia and UK-listed miner said that the new facility would be used on the existing $63-million secured project loan facility provided by Taurus Funds Management for the initial construction of the Mako mine, in Senegal, and to replace the $195-million senior bank debt facilities.
The new $300-million facility comprises a three-year $150-million revolving credit facility and a four-year $150-million term loan facility.
“We now have a simple low-cost flexible senior debt package which reduces our borrowing costs, provides immediate liquidity and will provide important flexibility for funding future growth initiatives,” Resolute MD and CEO John Welborn said on Friday.
“We expect the undrawn capacity of the facility to increase during 2020 as we generate positive cashflows from Syama and Mako and pay down debt. We look forward to working with our banking group to create further value for our shareholders.”
Mako will form part of Resolute’s overall security package for the syndicated loan facility, and will have no external royalty or independent encumbrance.