Teranga Gold Concludes $165 Million Development Finance Facility with Taurus
April 16 2018 - 5:30PM
(All amounts in U.S. dollars unless otherwise
indicated)
Teranga Gold Corporation ("
Teranga" or the
"
Company") (TSX:TGZ) (OTCQX:TGCDF) is pleased to
announce that it has concluded an agreement with various funds
managed by Taurus Funds Management Pty Ltd.
(“
Taurus”) in respect of its previously announced
secured development finance facility (the
“
Facility” and the “
Facility
Agreement”). The Facility includes the following:
- $165 million to be used towards funding the development of the
Wahgnion Gold Project and to repay all of the Company’s current
outstanding bank debt, totaling $15 million drawn on its revolving
credit facility;
- $25 million to be used toward future advancement of a
feasibility study for the Golden Hill Project (“Golden
Hill”); and
- $10 million equipment lease facility carve out for which the
Company has received a number of term sheets and is currently
evaluating.
In connection with the execution of the Facility
Agreement, the Company today also issued to Taurus an aggregate of
2,000,000 unlisted 4-year warrants to acquire Teranga common shares
at an exercise price equal to C$5.22. Other material terms of
the Facility were previously disclosed by Teranga in its press
release of March 12, 2018 announcing the Commitment Letter for the
Facility.
All drawdowns by the Company of funds under the
Facility are subject to customary conditions precedent. While
the Company is targeting early May 2018 as the initial drawdown
date, there is no guarantee that all of the conditions precedent
will be satisfied or that drawdown will occur.
Forward-Looking Statements
This press release contains certain statements
that constitute forward-looking information within the meaning of
applicable securities laws ("forward-looking statements"), which
reflects management's expectations regarding Teranga's future
growth and business prospects (including the timing and development
of new deposits and the success of exploration activities) and
opportunities. Wherever possible, words such as “objective to”,
“likely”, “intend to”, “potential”, “belief”, “believe”, “expects”,
“estimates”, “plans”, “anticipated”, “ability” and similar
expressions or statements that certain actions, events or results
“should”, or "will" have been used to identify such forward-looking
information. Forward-looking statements include, without
limitation, all disclosure regarding possible events, conditions or
results of operations, future economic conditions and anticipated
courses of action. Although the forward-looking statements
contained in this press release reflect management's current
beliefs based upon information currently available to management
and based upon what management believes to be reasonable
assumptions, Teranga cannot be certain that actual results will be
consistent with such forward-looking statements. Such
forward-looking statements are based upon assumptions, opinions and
analysis made by management in light of its experience, current
conditions and its expectations of future developments that
management believe to be reasonable and relevant but that may prove
to be incorrect. These assumptions include, among other things, the
ability to obtain any requisite governmental approvals, including
renewals of the Golden Hill exploration permits in 2018, the
accuracy of sampling, analytical and test data underlying the
exploration results included herein, gold price, exchange rates,
fuel and energy costs, future economic conditions, and anticipated
future estimates of free cash flow. Teranga cautions you not to
place undue reliance upon any such forward-looking statements.
The risks and uncertainties that may affect
forward-looking statements include, among others: the inherent
risks involved in exploration and development of mineral
properties, including government approvals and permitting, changes
in economic conditions, changes in the worldwide price of gold and
other key inputs, changes in mine plans and other factors, such as
project execution delays, many of which are beyond the control of
Teranga, as well as other risks and uncertainties which are more
fully described in Teranga's Annual Information Form
dated March 29, 2018, and in other filings of Teranga with
securities and regulatory authorities which are available
at www.sedar.com. Teranga does not undertake any obligation to
update forward-looking statements should assumptions related to
these plans, estimates, projections, beliefs and opinions change.
Nothing in this document should be construed as either an offer to
sell or a solicitation to buy or sell Teranga securities. All
references to Teranga include its subsidiaries unless the context
requires otherwise.
About Teranga
Teranga is a multi-jurisdictional West African
gold company focused on production and development as well as the
exploration of more than 5,000 km2 of land located on
prospective gold belts. Since its initial public offering in
2010, Teranga has produced more than 1.4 million ounces of gold
from its operations in Senegal, which as of June 30,
2017 had a reserve base of 2.7 million ounces of gold.
Focused on diversification and growth, the Company is advancing its
Wahgnion Gold Project, with a recently released positive
feasibility study, and conducting extensive exploration programs in
three countries: Burkina Faso, Senegal and Côte
d’Ivoire. Teranga has a strong balance sheet and the
financial flexibility to execute on its growth strategy. The
Company has nearly 4.0 million ounces of gold reserves from its
combined Sabodala Gold operations and Wahgnion Gold Project.
Steadfast in its commitment to set the benchmark
for responsible mining, Teranga operates in accordance with the
highest international standards and aims to act as a catalyst for
sustainable economic, environmental, and community development as
it strives to create value for all of its stakeholders.
Teranga is a member of the United Nations Global Compact and a
leading member of the multi-stakeholder group responsible for the
submission of the first Senegalese Extractive Industries
Transparency Initiative revenue report. The Company's
responsibility report is available at
www.terangagold.com/responsibilityreport and is prepared in
accordance with its commitments under the United Nations Global
Compact and in alignment with the Global Reporting Initiative
guidelines.
Contact Information
Richard Young
President & CEO
T: +1 416-594-0000 | E: ryoung@terangagold.com
Trish MoranHead of Investor RelationsT: +1 416-607-4507 | E:
tmoran@terangagold.com