LAKEWOOD, Colo., Dec. 1, 2016 /PRNewswire/ -- Pershing Gold
Corporation (NASDAQ:PGLC) (TSX: PGLC) (FWB:7PG1) ("Pershing Gold"
or the "Company"), the emerging Nevada gold producer, today announced that it
has entered into a non-binding term sheet with Sprott Resource
Lending ("Sprott") to provide a credit facility with a principal
amount of up to $20 million (the
"Facility").
The Company's ability to draw down on the Facility is subject to
the negotiation and execution of definitive agreements, completion
by Sprott of its due diligence review and the satisfaction of other
customary closing conditions. The Facility, when completed, would
be available for up to three draws occurring during a period of
five months following the closing date. As a condition to any such
draw, the Company would be required to raise equity financing not
less than the amount drawn. Amounts drawn under the Facility would
be secured by a lien on the Relief Canyon mine and processing
facilities and would bear interest at 9.0% per annum. Amounts drawn
would mature three years following the date drawn, with monthly
principal payments commencing on the earlier of June 30, 2018 or upon achievement of commercial
production at the Relief Canyon Mine.
The proceeds of the Facility would be used to advance the Relief
Canyon project towards production. There is no assurance that
definitive agreements with respect to the Facility will be
completed or that any amount will be drawn under the Facility.
About Pershing Gold Corporation
Pershing Gold is an
emerging gold producer whose primary asset is the Relief
Canyon Mine in Pershing County,
Nevada. Relief Canyon includes three historic open-pit mines
and a state-of-the-art, fully permitted and constructed heap-leach
processing facility. Pershing Gold is currently permitted to resume
mining at Relief Canyon under the existing Plan of Operations.
Pershing Gold's landholdings cover approximately 25,000 acres
that include the Relief Canyon Mine asset and lands surrounding the
mine in all directions. This land package provides Pershing Gold
with the opportunity to expand the Relief Canyon Mine deposit and
to explore and make new discoveries on nearby lands.
Pershing Gold is listed on the NASDAQ Global Market and the
Toronto Stock Exchange under the symbol PGLC and on the Frankfurt
Stock Exchange under the symbol 7PG1.
Legal Notice and Safe Harbor Statement
This press
release contains "forward-looking statements" within the meaning of
the safe harbor provisions of the U.S. Private Securities
Litigation Reform Act of 1995 and applicable Canadian securities
laws. All statements, other than statements of historical fact, are
"forward-looking statements," including statements regarding the
terms of the anticipated credit facility, use of proceeds and
possibility of restarting production at Relief Canyon. Although the
Company's management believes that such forward-looking statements
are reasonable, it cannot guarantee that such expectations are, or
will be, correct. These forward-looking statements involve a number
of risks and uncertainties, which could cause the Company's future
results to differ materially from those anticipated. Potential
risks and uncertainties include, among others, interpretations or
reinterpretations of geologic information, unfavorable exploration
results, inability to obtain permits required for future
exploration, development or production, general economic conditions
and conditions affecting the industries in which the Company
operates; the uncertainty of regulatory requirements and approvals;
and fluctuating mineral and commodity prices. Additional
information regarding the factors that may cause actual results to
differ materially from these forward-looking statements is
available in the Company's filings with the Securities and Exchange
Commission, including the Annual Report on Form 10-K for the year
ended December 31, 2015, and on SEDAR
at www.sedar.com. The Company assumes no obligation to update any
of the information contained or referenced in this press
release.
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SOURCE Pershing Gold Corporation