TORONTO, July 14,
2022 /CNW/ - Karora Resources Inc. (TSX: KRR) (OTCQX:
KRRGF) ("Karora" or the "Corporation") is pleased to announce
it has closed the previously announced (see Karora news release
dated June 9, 2022) senior secured
$80 million Credit Agreement with
Macquarie Bank Limited. The Credit Agreement provides for a
$40 Million term loan and a
$40 million revolving credit
facility, both bearing an interest rate of the Canadian Dealer
Offered Rate +4.5% per annum on the drawn principal and standby fee
of 1.5% per annum on the undrawn revolving credit facility. The
term loan was advanced to the Corporation on the closing date (and
the Corporation's prior term debt was fully repaid), and the
revolving credit facility will be made available to the Corporation
following completion of certain post-closing perfection steps and
upon other customary conditions precedent. The term of the Credit
Agreement is to June 28, 2024 with an
option for annual renewal thereafter. The proceeds of the Credit
Agreement will be used to refinance the Corporation's existing
$30 million credit facility which
bears an interest rate of the TD prime rate plus 6.05% per annum,
and for general working capital purposes.
About Karora Resources
Karora is focused on increasing gold production to a targeted
range of 185,000-205,000 ounces by 2024 at its integrated Beta Hunt
Gold Mine and Higginsville Gold Operations ("HGO") in Western Australia. The Higginsville treatment
facility is a low-cost 1.6 Mtpa processing plant, which is fed at
capacity from Karora's underground Beta Hunt mine and Higginsville
mines. Karora recently announced the proposed acquisition of the
Lakewood Mill in Western Australia
which will initially add 1.0 Mtpa capacity. At Beta Hunt, a robust
gold Mineral Resource and Reserve are hosted in multiple gold
shears, with gold intersections along a 4 km strike length
remaining open in multiple directions. HGO has a substantial
Mineral gold Resource and Reserve and prospective land package
totaling approximately 1,900 square kilometers. The Company also
owns the high grade Spargos Reward project, which came into
production in 2021. Karora has a strong Board and management team
focused on delivering shareholder value and responsible mining, as
demonstrated by Karora's commitment to reducing emissions across
its operations. Karora's common shares trade on the TSX under the
symbol KRR and also trade on the OTCQX market under the symbol
KRRGF.
Cautionary Statement Concerning
Forward-Looking Statements
This news release contains "forward-looking information"
including without limitation statements relating to production
guidance and the potential of the Beta Hunt Mine, Higginsville Gold
Operation, the Aquarius Project and the Spargos Gold Project, the
commencement of mining at the Spargos Gold Project and the
completion of the resource estimate.
Forward-looking statements involve known and unknown risks,
uncertainties and other factors which may cause the actual results,
performance or achievements of Karora to be materially different
from any future results, performance or achievements expressed or
implied by the forward-looking statements. Factors that could
affect the outcome include, among others: future prices and the
supply of metals; the results of drilling; inability to raise the
money necessary to incur the expenditures required to retain and
advance the properties; environmental liabilities (known and
unknown); general business, economic, competitive, political and
social uncertainties; results of exploration programs; accidents,
labour disputes and other risks of the mining industry; political
instability, terrorism, insurrection or war; or delays in obtaining
governmental approvals, projected cash operating costs, failure to
obtain regulatory or shareholder approvals. For a more detailed
discussion of such risks and other factors that could cause actual
results to differ materially from those expressed or implied by
such forward-looking statements, refer to Karora 's filings with
Canadian securities regulators, including the most recent Annual
Information Form, available on SEDAR at www.sedar.com.
Although Karora has attempted to identify important factors
that could cause actual actions, events or results to differ
materially from those described in forward-looking statements,
there may be other factors that cause actions, events or results to
differ from those anticipated, estimated or intended.
Forward-looking statements contained herein are made as of the date
of this news release and Karora disclaims any obligation to update
any forward-looking statements, whether as a result of new
information, future events or results or otherwise, except as
required by applicable securities laws.
SOURCE Karora Resources Inc.