Russian Promsvyazbank has agreed to provide up to US$45 m under a new debt facility to support the next steps in Auriant Mining’s development.
As a result of the refinancing Auriant’s bank debt will increase from US33.4 m to $45.0 m, while the overall interest rate on bank debt will decrease from 9.7% to at least 8.5%. At the same time Auriant Mining’s bank debt maturity will be extended by 4 years to 2018, with a 1 year grace period. First repayments of the debt principal will occur in 2015, compared with previous repayments of US$9.7 m in 2014 and US $17.2 m in 2015.
Auriant Mining New Debt Schedule
| Promsvyazbank Credit Line | US$ | Max Interest rate % | Principal Repayment Schedule | ||||||
| 2014 | 2015 | 2016 | 2017 | 2018 | |||||
| Overall Credit Limit for Auriant Group | 45,000,000 | 8.5 | - | 10,765,000 | 8,365,000 | 8,370,000 | 17,500,000 | ||
| Tardan | 35,000,000 | ||||||||
| Long term credit limit | 20,000,000 | 9.1 | - | 6,600,000 | 6,700,000 | 6,700,000 | - | ||
| Short term revolver - 270 days | 15,000,000 | 7.0 | - | 2,500,000 | - | - | 12,500,000 | ||
| Solcocon | 10,000,000 | ||||||||
| Long term credit limit | 5,000,000 | 11.5 | - | 1,665,000 | 1,665,000 | 1,670,000 | - | ||
| Short term revolver - 270 days | 5,000,000 | 9.5 | - | - | - | - | 5,000,000 | ||
The new debt facility will be used to finance capital investments and repayment of the current Svyazbank short term loan of US$6.9 m. As a result of this refinancing Pormsvyazbank becomes the only bank creditor to the Group.
Commenting on the refinancing, Auriant Mining Acting CFO Dmitry Novikov said, “This is a very positive development for the Company. While the overall debt has increased by 35%, the lower interest rate, and increased maturity of the debt means that this refinancing will have a large, positive impact on our cash flows in the short to medium terms. This refinancing has become possible due to the improved performance of the company, proven track record of meeting production targets, and hence decreased credit risk.”
For more information, please contact:
Max Yacoub, CIO
tel: +7 495 660 22 20
e-mail: max.yacoub@auriant.com
Company name: Auriant Mining AB
Short name: AUR
ISIN-code: SE0001337213
Website: www.auriant.com
Twitter: @auriantmining
Postal and visiting address: Tulegata 2A, SE-113 58 Stockholm
Auriant Mining AB (AUR) is a Swedish junior mining company focused on gold exploration and production in Russia, primarily in Zabaikalye and the Republics of Khakassia and Tyva. The company has currently four assets, including two operating mines (Tardan and Solcocon) and two early stage exploration assets, one of which, Kara-Beldyr, is a joint venture with the major Canadian gold producer Centerra Gold. The group’s mineral licenses are estimated to contain almost 1,000,000 troy ounces of gold reserves according to the Russian standards (GKZ).
Since July 19, 2010, Auriant Mining´s shares are traded on First North Premier at the NASDAQ OMX Nordic Exchange under the short name AUR (before June 25, 2012 - under the short name CAG). For more information please visit www.auriant.com. Mangold Fondkommission is Certified Adviser to Auriant, for more information please call +46 8 503 015 50 or visit www.mangold.se.
Cautionary Statement: Statements and assumptions made in this report with respect to Auriant Mining AB’s (“AUR”) current plans, estimates, strategies and beliefs, and other statements that are not historical facts, are forward-looking statements about the future performance of AUR. Forward-looking statements include, but are not limited to, those using words such as "may", "might", "seeks", "expects", "anticipates", "estimates", "believes", "projects", "plans", strategy", "forecast" and similar expressions. These statements reflect management's expectations and assumptions in light of currently available information. They are subject to a number of risks and uncertainties, including, but not limited to, (i) changes in the economic, regulatory and political environments in the countries where AUR operates; (ii) changes relating to the geological information available in respect of the various projects undertaken; (iii) AUR’s continued ability to secure enough financing to carry on its operations as a going concern; (iv) the success of its potential joint ventures and alliances, if any; (v) exchange rates, particularly between the Russian rouble and the U.S. dollar. In the light of the many risks and uncertainties surrounding any gold production and exploration company at an early stage of its development, the actual results could differ materially from those presented and forecast in this report. AUR assumes no unconditional obligation to immediately update any such statements and/or forecasts
This press release shall not, directly or indirectly, be released, published or distributed in or to the United States, Australia Japan, Canada, New Zealand, Hong Kong, South Africa or other country where such action as a whole or in part is subject to legal restrictions. Nothing in this press release should be considered as an offer to invest or otherwise trade in shares of Auriant Mining AB (publ). The proposed issue will not be directed at residents or those living in the United States, Australia, Japan, Canada, New Zealand, Hong Kong, South Africa or other country where such action would require further prospectus, other offering documentation, registration or other measures beyond those required by Swedish law. No securities will be registered under the United States Securities Act of 1933, a similar law in any state in the United States, or under any provincial law in Canada, nor under the applicable law of another country.
