Amaroq pours first gold at Nalunaq mine in Greenland
Amaroq has completed the first gold pour at its flagship mine in Greenland.
Halifax, Nova Scotia – GoGold Resources Inc. (TSX: GGD) (“GoGold” or the “Company”) is pleased to announce the closing of a US$50,000,000 Senior Secured Revolving Credit Facility (“Revolver”) with the Bank of Montreal. The Revolver has a three year term with a floating interest rate currently estimated to be approximately 2.20% to 3.45% depending on certain financial ratios and the prevailing London Interbank Offered Rate (LIBOR). The debt is secured by all assets of GoGold and its subsidiaries.
“Obtaining financing at this low cost of capital is a true testament to and validation of the Parral project’s performance,” said Dana Hatfield, GoGold’s Chief Financial Officer. “This project continues to produce strong free cash flow at today’s depressed metal prices due to its low cash costs, which are some of the lowest amongst silver producers. Today’s financing also means we are now able to advance our Santa Gertrudis project without any shareholder dilution”
The Revolver will be used to retire the existing credit facility with Orion Mine Finance of approximately US$23.5 million that bears interest at a higher rate of 7.5%. The remainder of the funds, once drawn, will go towards the construction of the Company’s Santa Gertrudis gold mine in Sonora State, Mexico.
“With this Revolver and free cash flow from our Parral project, we are now fully funded and in a position to start constructing the Santa Gertrudis project,” said Terry Coughlan President and CEO. “We are currently advancing the project towards construction and expect to break ground in the fall of this year. Santa Gertrudis is an outstanding project which aligns well with our corporate strategy of acquiring and developing low capex and high margin projects.”
