TORONTO, Jan. 18, 2017 /CNW/ - Roxgold Inc. ("Roxgold" or
"the Company") (TSX.V: ROG) is pleased to announce that it has
successfully completed the lenders' completion test and made an
early repayment of US$15 million
under its US$75 million credit
facility (the "Initial Facility"). The Company is also announcing
that it has amended the Initial Facility with BNP Paribas and
Societé Generalé Corporate & Investment Banking ("Societé
Generalé") (the "Amended Facility") in order to reduce borrowing
costs and obtain more financial flexibility.
The Yaramoko Gold Mine successfully passed the lenders'
completion test, which encompasses a number of key performance and
financial metrics including reserve grade reconciliation, plant
throughput, metal recoveries and operating costs. As a result of
passing the completion test, the US$15
million cost overrun facility required under the Initial
Facility has been released.
The Initial Facility of US$75
million has been amended to a US$60
million credit facility, amortizing on a quarterly basis,
maturing in June 2021 at an interest
rate of LIBOR plus 3.75% which represents a reduction of 1.00% from
the current prevailing rate. The Amended Facility is no longer
subject to a semi-annual mandatory cash sweep and reduces
restrictions on the timing and usage of cash flow generated from
the Yaramoko Gold Mine. The first US$15
million tranche of the Amended Facility has also been
arranged as a revolving credit facility to provide further
financial flexibility.
"We continue to have a positive relationship with our partners,
Societé Generalé and BNP Paribas, and thank them for their
continued support," said John
Dorward, President and CEO. "Successfully completing the
lenders' completion test straight out of the gate is a significant
milestone for Roxgold and the terms of the Amended Facility will
allow us the flexibility to execute on our strategy of organic
growth."
About Roxgold
Roxgold is a gold mining company with its key asset, the high
grade Yaramoko Gold Mine, located in the Houndé greenstone region
of Burkina Faso, West Africa. The Company declared commercial
production on October 1, 2016.
Roxgold trades on the TSX Venture Exchange under the symbol ROG and
as part of the Nasdaq International Designation program with the
symbol OTC: ROGFF.
"Neither TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in policies of the TSX Venture
Exchange) accepts responsibility for the adequacy or accuracy of
this release." This news release contains forward-looking
information. Forward looking information contained in this new
release includes, but is not limited to, statements with respect
to: (i) the estimation of measured, inferred and indicated mineral
resources and probable mineral reserves including, without
limitation, statements with respect to the potential establishment
of new mineral resources and the expansion potential of existing
mineral resources/reserves; and (ii) the success of exploration and
development activities; and (iii) the technical report entitled
"Technical Report for the Yaramoko Gold Project, Burkina Faso" dated June 4, 2014 (the "Feasibility Study"). These
statements are based on information currently available to the
Company and the Company provides no assurance that actual results
will meet management's expectations. In certain cases,
forward-looking information may be identified by such terms as
"anticipates", "believes", "could", "estimates", "expects", "may",
"shall", "will", or "would". Forward-looking information contained
in this news release is based on certain factors and assumptions
regarding, among other things, the estimation of mineral resources
and mineral reserves (and potential establishment and increases in
respect thereof), the realization of resource estimates and reserve
estimates, gold metal prices, the timing and amount of future
exploration and development expenditures, and materials to continue
to explore and develop the Yaramoko project in the short and
long-term, the progress of exploration and development activities,
the receipt of necessary regulatory approvals, and assumptions with
respect to currency fluctuations, environmental risks, title
disputes or claims, and other similar matters. While the Company
considers these assumptions to be reasonable based on information
currently available to it, they may prove to be incorrect. Forward
looking information involves known and unknown risks, uncertainties
and other factors which may cause the actual results, performance
or achievements of the Company to be materially different from any
future results, performance or achievements expressed or implied by
the forward-looking information. Such factors include risks
inherent in the exploration, risks relating to variations in
mineral resources and mineral reserves, grade or recovery rates
resulting from current exploration and development activities
(including risks that new mineral resources may not be established,
or the anticipated expansion potential of existing mineral
resources/reserves may not be realized), risks relating to changes
in gold prices and the worldwide demand for and supply of gold,
risks related to increased competition in the mining industry
generally, risks related to current global financial conditions,
uncertainties inherent in the estimation of mineral resources and
mineral reserves, access and supply risks, reliance on key
personnel, operational risks inherent in the conduct of mining
activities including the risk of accidents, labour disputes,
increases in capital and operating costs and the risk of delays or
regulatory risks, including risks relating to the acquisition of
the necessary licenses and permits, capitalization and liquidity
risks, risks related to disputes concerning property titles and
interest, and environmental risks. Please refer to the Company's
Annual Information Form dated April 10,
2015 filed on SEDAR at www.sedar.com for
political, environmental or other risks that could materially
affect the development of mineral resources and mineral reserves.
This list is not exhaustive of the factors that may affect any of
the Company's forward-looking information. These and other factors
should be considered carefully and readers should not place undue
reliance on the Company's forward-looking information. The Company
does not undertake to update any forward-looking information that
may be made from time to time by the Company or on its behalf,
except in accordance with applicable securities laws.
SOURCE Roxgold Inc.