Beadell Resources Ltd. secured a US$60 million senior credit facility from Sprott Private Resource Lending LP to fund the development of its Tucano gold mine in Brazil, for the retirement of an existing loan facility and for general corporate purposes.
The facility has a four-year tenor and bears a 6.75% annual interest rate plus the greater of US 3-month London Interbank Offered Rate, or 1.25%. It also includes a fixed production link payment of US$10 per ounce of gold on 50% output in years two through four, capped at 225,000 ounces.
"The facility ensures ample liquidity through the final stages of the operational turnaround at Tucano, which commenced in 2016 including the completion of our plant upgrade which remains on time and on budget for completion midyear," Beadell CEO and Managing Director Simon Jackson said.
As of June 30, 2017, Tucano was estimated to host total ore reserves of 25.1 million tonnes at 1.83 g/t of gold for 1.5 million ounces and resources of 63.5 million tonnes at 1.82 g/t of gold for 3.7 million ounces.