SEMAFO Inc.said March 30 that it has executed a US$120 million credit facility with MacquarieBank Ltd., which will be put toward the development of the Natougou project in Burkina Faso.
The facility is repayable in quarterly payments of US$15 million,starting in the first quarter of 2019 and ending in the fourth quarter of 2020.It bears interest at LIBOR plus 4.75%, and replaces SEMAFO's previous US$90 millioncredit facility. The company repaid US$30 million on March 3.
Under the terms of the new facility, the incremental US$60 millionmust be drawn down by June 30, 2017. Drawdown and extension of the maturity fromMarch 2018 to December 2020 are dependent on establishing a US$40 million restrictedcash deposit, the receipt of permits, signing of a mining convention, and completionof due diligence update by Macquarie.
The restricted cash deposit requirement will be reduced to US$15million once commercial production begins at Natougou.