Centerra Gold Inc.said April 5 that its Öksüt MadencilikSanayi ve Ticaret AS unit signed a project financing term loan facilityof up to US$150.0 million for the Öksütgold project in Turkey.
The 5.75-year term facility bears an interest rate of LIBOR plus2.65% to 2.95%, depending on the project's completion status, with no hedging requirements.It is fully underwritten by UniCredit Bank AG, secured by the Öksüt project's assetsand is non-recourse to Centerra Gold.
Proceeds from the facility are intended to finance a substantialportion of the construction, development and operation of the Öksüt gold mine andits related infrastructure in the Kayseri region of central Turkey. According toCenterra Gold CEO Scott Perry, the facility will also provide the company with continuedfinancial flexibility and help the miner maintain a strong balance sheet for itsgrowth pipeline.
Advances under the facility are subject to customary conditions,including project permits and approvals.