(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 satisfied all conditions precedent for its
first drawdown under the secured development finance facility with
Taurus Funds Management Pty Ltd. (the
“
Facility”). The Facility is comprised of
$165 million (the “
PF Tranche”) to be used towards
funding the development of the Wahgnion Gold Project
(“
Wahgnion”) and to repay all of the Company’s
current outstanding bank debt totaling $15 million drawn on its
revolving credit facility with Société Générale. The Facility
also includes $25 million (the “
GH Tranche”) to be
used toward future advancement of a feasibility study for the
Golden Hill Project.
The first drawdown under the PF Tranche was $70
million, $15 million of which was used to close out its revolving
credit facility with Société Générale. At Wahgnion, all critical
long-lead equipment and key contracts have been awarded and bulk
earthworks are underway with concrete installation for the mill
foundation on schedule to begin in May.
“The next key pillar in our growth strategy is
Wahgnion,” said Richard Young, President and Chief Executive
Officer. “With first drawdown, we are now well on our way to
building our second mine, with first gold pour expected by the end
of 2019. Wahgnion is expected to increase companywide
production by 50% in 2020 to between 300,000 and 350,000 ounces of
gold.”
The Facility includes a $10 million dollar carve
out for equipment financing, which the Company is pursuing and
anticipates having in place prior to year-end.
All subsequent drawdowns of funds under the
Facility remain subject to satisfaction of customary conditions
precedent. Timing of drawdowns under the GH Tranche are
dependent on future drilling results from the Golden Hill Project;
however, there is no guarantee that all necessary conditions
precedent will be satisfied or that subsequent drawdowns will occur
as and when anticipated.
Forward-Looking Statements
All information included in this press release,
including any information as to Teranga’s future financial or
operating performance and other statements that express
management’s expectations or estimates of future performance, other
than statements of historical fact, constitute forward-looking
information or forward-looking statements within the meaning of
applicable securities laws and are based on expectations, estimates
and projections as of the date hereof. Forward-looking statements
are included for the purpose of providing information about
management’s current expectations and plans relating to the future.
Wherever possible, words such as “plans”, “expects”, “scheduled”,
“trends”, “indications”, “potential”, “estimates”, “predicts”,
“anticipate”, “to establish”, “believe”, “intend”, “ability to”, or
statements that certain actions, events or results “may”, “could”,
“would”, “might”, “will”, or are "likely" to be taken, occur or be
achieved, or the negative of these words or other variations
thereof, have been used to identify such forward-looking
information. Specific forward-looking statements include,
without limitation, all disclosure regarding future results of
operations, economic conditions and anticipated courses of
action. Although the forward-looking statements contained
herein reflect management's current beliefs and reasonable
assumptions based upon information available to management as of
the date hereof, Teranga cannot be certain that actual results will
be consistent with such forward-looking information. Such
assumptions include, among others, the ability to obtain any
requisite governmental approvals, the accuracy of mineral reserve
and mineral resource estimates, gold price, exchange rates, fuel
and energy costs, future economic conditions, anticipated future
estimates of free cash flow, and courses of action. 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. For a more comprehensive discussion of the risks faced by
Teranga, and which may cause the actual financial results,
performance or achievements of Teranga to be materially different
from estimated future results, performance or achievements
expressed or implied by forward-looking information or
forward-looking statements, please refer to Teranga’s latest Annual
Information Form filed with Canadian securities regulatory
authorities at www.sedar.com or on Teranga’s website at
www.terangagold.com. The risks described in the Annual
Information Form (filed and viewable on www.sedar.com and on
Teranga’s website at www.terangagold.com) are hereby incorporated
by reference herein. Teranga disclaims any intention or
obligation to update or revise any forward-looking statements
whether as a result of new information, future events or otherwise,
except as required by applicable law. Nothing herein 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. This press
release contains references to Teranga using the words “we”, “us”,
“our” and similar words and the reader is referred to using the
words “you”, “your” and similar words. All dollar amounts stated
are denominated in U.S. dollars unless specified 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 6,400 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.
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Contact
Information |
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Richard Young |
Trish Moran |
President &
CEO |
Head of Investor
Relations |
T: +1 416-594-0000 | E:
ryoung@terangagold.com |
T: +1 416-607-4507 | E:
tmoran@terangagold.com |
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