Australian gold producer St Barbara Ltd. will buy back US$20 million in aggregate principal of its U.S. 144A senior secured notes, effective Jan. 20, 2017.

The notes will be repurchased at a 3.3% premium to par value, and the transaction will reduce the company's future interest expense by about A$2.4 million per annum, St Barbara said on Dec. 19.

Net payments for the repurchase are anticipated to be about US$21 million, which includes principal repayment, premium and accrued interest.

The buyback will be funded from U.S. dollar cash reserves generated from gold sales in the same currency.

Following the US$20 million buyback, St Barbara's net cash position is expected to exceed A$40 million.

Previously, the company announced offers to buy back US$33 million of notes in November, US$55 million of senior secured notes in October and US$40 million of notes in July.