Provision of a US$55m Loan Facility (3001Z)
January 12 2011 - 1:00AM
UK Regulatory
TIDMAR.
RNS Number : 3001Z
Archipelago Resources PLC
12 January 2011
12 January 2011 AIM: AR
Archipelago Resources
("Archipelago" or "the Company")
Provision of a US$55m loan facility by an Indonesian bank
Archipelago is pleased to announce a US$55m secured loan
facility from a prominent Indonesian bank which will be used to
complete construction of the Toka Tindung Gold Project ("the
Project" in Sulawesi, Indonesia in which the Company has a 95%
interest. The initial facility's agreement date is today and the
key terms of the facility are as follows:
-- Maturity date of 9 months from the initial facility's
agreement date;
-- An interest rate of 5.5% per annum with interest paid every 3
months;
Upon maturity of the initial 9 month facility above, a second
loan facility of US$55m will be available if required to, refinance
the initial facility, the key terms of which are as follows:
-- Maturity date of 4 years after the agreement date of the
second loan facility;
-- An interest rate of 5.75% per annum with interest paid every
3 months;
Both loan facilities will have a facility fee and an
administration fee payable within 5 days of the respective
agreement date. Management are of the opinion that these terms are
considered financially competitive and generally commensurate with
industry loans of this type.
Revenue protection is required in the form of put options
intended to provide a floor price of circa US$900/oz for
approximately 100,000 ounces of gold in total over the life of the
loan. All of the Company's production will remain exposed to any
increases in the gold price.
The Toka Tindung Gold Project has a resource of 1.7 million
ounces of which 1.1m will be minable by way of open pit mining. It
will be in production by the end of March 2011 and is targeted to
produce 110,000 ozs of gold equivalent in calendar year 2011, with
an annual average production of 160,000 ozs of gold equivalent over
the first 6 years of the initial 8 year project life. Mining has
been underway since the third quarter of 2010 and the processing
plant is nearing completion and undergoing pipe and cable
installation. In addition the Company will spend US$30m, the
majority of which will be funded from operational cash flow, on an
exploration program to be undertaken over the next two years
following up the Company's many prospective exploration
targets.
Further Info: Colin Loosemore, Managing Director, Archipelago
Resources Plc.
Tel: 00-618-9364-8301
Shaun Whyte, Ambrian Partners Ltd
Tel: 0207634-4700
Bobby Morse / Katharine Sutton, Buchanan Communications
Tel: 0207466 5000
Gerry Beaney / Fiona Kindness / David Hignell, Grant Thornton
Corporate Finance
Tel: 020 7383 5100
www.archipelagoresources.co.uk
Archipelago is a mining company listed on the AIM market of the
London Stock Exchange. The Company's principal activities are gold
mining and exploration in Indonesia (as 95% owner of the near
production Toka Tindung Gold Project in Sulawesi), Vietnam (as
majority party in the Pac Lang and Cam Thuy/Ba Thuoc joint ventures
with VINACOMIN a Vietnamese Government mining company) and the
Philippines (via entitlement to not less than an 80% interest in
exploration company Corplex).
This information is provided by RNS
The company news service from the London Stock Exchange
END
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