Midway Closes US$55 Million Project Finance Facility with Commonwealth Bank of Australia Pan Project, Nevada
July 21 2014 - 9:15AM
Business Wire
Midway Gold Corp. ("Midway" or the "Company") (MDW:TSX,
MDW:NYSE-MKT) announces closing of the previously announced US$55
million 3-year senior secured project finance facility
(the "Loan Facility"). The Loan Facility is with Commonwealth
Bank of Australia (“Commonwealth Bank”) and will be used to fund
continued development of the Company’s 100%-owned Pan Gold Mine
(“Pan”), located in White Pine County, Nevada. Pan is currently
under construction and first gold pour is expected in the fourth
quarter of 2014.
The Loan Facility is comprised of two tranches: a project
finance facility of US$45 million, plus a cost overrun facility of
US$10 million. Advances under the project finance facility will
bear interest at LIBOR plus 3.50% to 3.75%, and advances under the
cost overrun facility will bear interest at the project finance
facility rate plus 2.00%.
The Loan Facility is secured by substantially all of the assets
of the borrower (MDW Pan LLP, which is comprised solely of the Pan
project) and its affiliates. Upon achieving economic completion and
meeting certain other requirements, security will be limited to the
assets of MDW Pan LLP and guarantees from the Company and one other
affiliate.
The Loan Facility is subject to customary conditions precedent
to draw on the loan including the establishment of an un-margined
hedging program through Commonwealth Bank, which provides downside
protection for the Company’s debt. This program will cover a period
of less than two years commencing approximately six months after
the planned start of production, and is expected to comprise an
estimated 11% of the Pan project's anticipated life-of-mine
production based on the current reserve base (see November 2011
Resource Estimate) assuming a spot gold price of approximately
$1,300/oz.
Commonwealth Bank of Australia is a leading financier to
the mining industry globally, with specialist multi-disciplinary
teams in New York, London and throughout the Asia-Pacific region
with extensive transaction experience and clients spanning
single-asset emerging producers to global multi-national mining
companies. Commonwealth Bank is among the ten largest banks in the
world by market capitalization with an AA- credit rating from
S&P and total assets of AUD 782 billion (approximately USD 698
billion) as at 31 December 2013.
ON BEHALF OF THE BOARD
"Kenneth A. Brunk"Kenneth A. Brunk,
Chairman, President and CEO
About Midway Gold Corp.
Midway Gold Corp. is a precious metals company with a vision to
explore, design, build and operate gold mines in a manner
accountable to all stakeholders while assuring return on
shareholder investments. For more information about Midway, please
visit our website at www.midwaygold.com or contact Jaime Wells,
Investor Relations Analyst, at 720-979-0900.
Neither the TSX Exchange, its Regulation Services Provider (as
that term is defined in the policies of the TSX Exchange) nor the
NYSE MKT accepts responsibility for the adequacy or accuracy of
this release.
This press release contains forward-looking statements about the
Company and its business. Forward looking statements are statements
that are not historical facts and include, but are not limited to,
statements about the Company's intended work plans and resource
estimates and potential offering of common shares of the Company
from time to time. Forward-looking statements are typically
identified by words such as: “may”, “should”, “plan”, “believe”,
“predict”, “expect”, “anticipate”, “intend”, “estimate”, postulate”
and similar expressions or the negative of such expressions or
which by their nature refer to future events. The forward-looking
statements in this press release are subject to various risks,
uncertainties and other factors that could cause the Company's
actual results or achievements to differ materially from those
expressed in or implied by forward looking statements. There can be
no assurances that the conditions precedent to draw on the Loan
Facility will be met or we will draw on the Loan Facility even if
we complete the conditions precedent. Other risks, uncertainties
and factors include, without limitation, risks related to the
timing and completion of the Company's intended work plans, risks
related to fluctuations in gold prices; uncertainties related to
raising sufficient financing to fund the planned work in a timely
manner and on acceptable terms; changes in planned work resulting
from weather, logistical, technical or other factors; the
possibility that results of work will not fulfill expectations and
realize the perceived potential of the Company's properties;
uncertainties involved in the interpretation of drilling results
and other tests and the estimation of gold resources and reserves;
the possibility that required permits may not be obtained on a
timely manner or at all; the possibility that capital and operating
costs may be higher than currently estimated and may preclude
commercial development or render operations uneconomic; the
possibility that the estimated recovery rates may not be achieved;
risk of accidents, equipment breakdowns and labor disputes or other
unanticipated difficulties or interruptions; the possibility of
cost overruns or unanticipated expenses in the work program;
changes in interest and currency exchanges rates; local and
community impacts and issues; environmental costs and risks; and
other factors identified in the Company's SEC filings and its
filings with Canadian securities regulatory authorities.
Forward-looking statements are based on the beliefs, opinions and
expectations of the Company's management at the time they are made,
and other than as required by applicable securities laws, the
Company does not assume any obligation to update its
forward-looking statements if those beliefs, opinions or
expectations, or other circumstances, should change. Although the
Company believes that such forward-looking statements are
reasonable, it can give no assurance that such expectations will
prove to be correct. For the reasons set forth above, investors
should not attribute undue certainty to or place undue reliance on
forward-looking statements.
Midway Gold Corp.Jaime Wells, 877-475-3642
(toll-free)Investor Relations Analyst