Lydian International Ltd (TSE:LYD), the developer of the Amulsar gold project in Armenia, has entered into a US$24mln secured credit facility with Ameriabank CJSC.
Proceeds of the facility will be used for equipment purchases at Amulsar, where construction kicked off last month.
First gold production at Amulsar is expected during the first quarter of 2018.
The Ameriabank facility will be available in multiple tranches, with an initial advance of US$10mln expected to be drawn down as early as next month.
Each tranche will be repayable over a 10-year period from the date of advance, including an initial principal grace period of one year. The facility bears an interest at LIBOR (London interbank offered rate) plus 8.75%. A commitment fee of 2% will apply to any undrawn portion of the facility.
“Lydian is now within US$50mln of its total Amulsar financing plan of at least US$420mln,” revealed Howard Stevenson, Lydian’s president and chief executive officer.
“We expect to fill this remaining amount with other equipment financing facilities, which are well advanced at this time. Ameriabank is the largest bank in Armenia, and will be among our most-valued in-country partners,” Stevenson added.
Gagik Sahakyan, a director of corporate banking at Ameriabank, said the bank was looking forward to a long relationship with the Lydian team.
Shares in Lydian were up 1.5% in early deals.
Story by ProactiveInvestors