Atlantic Gold Finalizes $115M Agreement to Develop Its Moose River Consolidated Project, Nova Scotia
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Atlantic Gold Corporation has finalized a $115 million project loan facility (PLF) to fund the majority of the construction costs of the company’s Moose River Consolidated Project (MRC Project) in Nova Scotia.
The terms of the PLF are substantially the same as previously reported in February 2016. That is, the PLF carries an interest rate of the Canadian dealer offered rate, or CDOR, plus a margin 5 percent (pre-project completion), reducing to 4.5 percent post-completion, and is repayable in quarterly installments over three years.
“Atlantic is pleased to have completed a definitive credit agreement with Macquarie Bank and Cat Financial for a project loan facility that will fund the majority of the construction costs at MRC. The company looks forward to completing its remaining financing transactions in the immediate future,” said Steven Dean, chairman and CEO of Atlantic Gold.
In order to mitigate gold price risk and as a condition of the PLF, Atlantic is required to enter into margin free gold forward sales contracts of 215,000 ounces, representing approximately 30 percent of total recovered life of mine gold production of the MRC Project at an agreed minimum Canadian dollar forward price of $1,500. The company has already executed gold price hedging contracts covering 100,000 ounces of production.
About Atlantic Gold
Atlantic Gold Corporation is a well-financed, growth-oriented gold development group with a long term strategy to create a mid-tier gold production group focused on manageable, executable projects in mining-friendly jurisdictions.
To stop by Atlantic Gold’s website, CLICK HERE
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