Gold Road Resources’ (ASX: GOR) transition from explorer to producer has taken a significant step with the Perth company securing finance facilities for the next stage of its corporate evolution. The facilities include a $100 million revolving corporate facility, a $50 million dedicated working capital facility for the Gruyere mine development, and an increase in discretionary gold hedging capacity. Gruyere is expected to produce first gold early next year.
- Revolving Corporate Facility totalling A$100 million
- Dedicated Working Capital Facility totalling A$50 million for Gruyere Project
- Discretionary Gold Hedging capacity increased
- Additional 16,000 ounces of gold forward sales completed at an average forward price of A$1,718 per ounce
Gold Road Resources Limited (ASX: GOR) (Gold Road or the Company) is pleased to announce the signing of a Revolving Corporate, Working Capital and Gold Hedging Agreement (Finance Facilities) with a financing syndicate comprising ING Bank Australia, National Australia Bank and Société Générale Hong Kong. The Finance Facilities, which have been more than six months in the making and were alluded to by the Company on 20 November 2017, are part of Gold Road’s prudent management of financial assets.
Gold Road Managing Director & CEO Ian Murray said:
“These Finance Facilities are a prudent move as we transition the Company from being an explorer with a development asset to an Australian mid-tier gold producer with significant exploration upside and the financial capability and flexibility to grow further.”
“The establishment of these financing facilities provides a strong platform to ensure the continuance of the planned exploration across all the Yamarna tenements, as well as ensuring the Gruyere JV is supported through the important pre-completion and commissioning phase. The additional discretionary gold hedging capacity affords Gold Road the flexibility to appropriately manage its gold price risk exposures as Gruyere moves into production.”
“The financing syndicate provided these facilities on very competitive pricing and terms because of the quality of the Gruyere Project, our highly regarded JV partner and manager, and the advanced stage of construction.”