Canadian dollars unless otherwise
noted
VANCOUVER, Sept. 20, 2018
/CNW/ - Atlantic Gold Corporation (TSX-V: AGB) ("Atlantic"
or the "Company") is pleased to announce the execution of a
definitive credit agreement (the "Credit Agreement") with a
syndicate of lenders, led by National Bank of Canada ("NB"), and including Canadian
Imperial Bank of Commerce ("CIBC"), and Caterpillar
Financial Services Limited ("Cat Financial") in respect of a
previously announced CAD $150,000,000
senior secured revolving credit facility (the "Revolving
Credit Facility" or "RCF"), to be used for, but not
limited to repayment of the Borrower's previously held project loan
facility ("PLF") and to provide additional financing
capacity for development and growth opportunities.
The balance of the PLF of approximately CAD$106 million is being repaid by partial
drawdown of the new RCF. With the repayment of the PLF, any
restricted cash under that facility will become
unrestricted. Total cash as at the date of this announcement
is approximately $40 million.
The terms of the RCF are substantially the same as previously
disclosed in a news release dated July 3,
2018 in that the RCF will have a 3 year term from the
closing date with a customary annual extension mechanism and has no
mandatory amortisation typical of a revolving facility. The
interest rate charged on the initial drawdown will be approximately
5%, but may vary in the future depending on the type of borrowing
and the Company's total leverage ratio at the appropriate
time.
The Company will maintain its gold forward sales contracts with
NB and its syndicate of lenders.
The Company was advised by Noah's Rule (Debt and Hedge Adviser),
Stewart McKelvey, and Cassels Brock
Lawyers (Legal Counsel).
On behalf of the Board of Directors,
Steven Dean
Chairman and Chief Executive Officer
Neither the TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
About Atlantic:
Atlantic is a well-financed, growth-oriented gold development
group with a long-term strategy to build a mid-tier gold production
company focused on manageable, executable projects in
mining-friendly jurisdictions.
Atlantic is focused on growing gold production in
Nova Scotia beginning with its MRC
phase one open pit gold mine which declared commercial production
in March 2018, and its phase two Life
of Mine Expansion which will ramp up gold production to + 200,000
ounces per year at industry lowest quartile cash and
all-in-sustaining-costs (as stated in the Company's news releases
dated January 19, 2018 and
January 29, 2018).
Atlantic is committed to the highest standards of
environmental and social responsibility and continually invests in
people and technology to manage risks, maximize outcomes and
returns to all stakeholders.
Forward-Looking Statements:
This release contains certain "forward looking statements"
and certain "forward-looking information" as defined under
applicable Canadian and U.S. securities laws. Forward-looking
statements and information can generally be identified by the use
of forward-looking terminology such as "may", "will", "expect",
"intend", "estimate", "anticipate", "believe", "continue", "plans"
or similar terminology. Forward-looking statements and information
are not historical facts, are made as of the date of this press
release, and include, but are not limited to, statements regarding
discussions of future plans, guidance, projections, objectives,
estimates and forecasts and statements as to management's
expectations with respect to, among other things, the activities
contemplated in this news release and the timing and receipt of
requisite regulatory, and shareholder approvals in respect thereof.
Forward looking information, including future oriented financial
information (such as guidance) provide investors an improved
ability to evaluate the underlying performance of the
Company. Forward-looking statements in this news release
include, without limitation, statements related to proposed
exploration and development programs, grade and tonnage of material
and resource estimates. These forward looking statements involve
numerous risks and uncertainties and actual results may vary.
Important factors that may cause actual results to vary include
without limitation, the timing and receipt of certain approvals,
changes in commodity and power prices, changes in interest and
currency exchange rates, risks inherent in exploration estimates
and results, timing and success, inaccurate geological and
metallurgical assumptions (including with respect to the size,
grade and recoverability of mineral reserves and resources),
changes in development or mining plans due to changes in
logistical, technical or other factors, unanticipated operational
difficulties (including failure of plant, equipment or processes to
operate in accordance with specifications, cost escalation,
unavailability of materials, equipment and third party contractors,
delays in the receipt of government approvals, industrial
disturbances or other job action, and unanticipated events related
to health, safety and environmental matters), political risk,
social unrest, and changes in general economic conditions or
conditions in the financial markets. In making the forward-looking
statements in this press release, the Company has applied several
material assumptions, including without limitation, the assumptions
that: (1) market fundamentals will result in sustained gold demand
and prices; (2) the receipt of any necessary approvals and consents
in connection with the development of any properties; (3) the
availability of financing on suitable terms for the development,
construction and continued operation of any mineral properties; and
(4) sustained commodity prices such that any properties put into
operation remain economically viable. Information concerning
mineral reserve and mineral resource estimates also may be
considered forward-looking statements, as such information
constitutes a prediction of what mineralization might be found to
be present if and when a project is actually developed. Certain of
the risks and assumptions are described in more detail in the
Company's audited financial statements and MD&A for the year
ended December 31, 2017 and for the
quarter ended June 30, 2018 on the
Company's SEDAR profile at www.sedar.com. The actual results or
performance by the Company could differ materially from those
expressed in, or implied by, any forward-looking statements
relating to those matters. Accordingly, no assurances can be given
that any of the events anticipated by the forward-looking
statements will transpire or occur, or if any of them do so, what
impact they will have on the results of operations or financial
condition of the Company. Except as required by law, the Company is
under no obligation, and expressly disclaim any obligation, to
update, alter or otherwise revise any forward-looking statement,
whether written or oral, that may be made from time to time,
whether as a result of new information, future events or otherwise,
except as may be required under applicable securities laws.
SOURCE Atlantic Gold Corporation