Trading Symbol: TSX-V: ARTG
All figures presented in Canadian Dollars, unless specified otherwise
Macquarie is part of Macquarie Group, a diversified financial group in 31 markets providing clients with asset management and finance, banking, advisory and risk and capital solutions across debt, equity and commodities and a recognized global leader in the provision of mining project finance.
Highlights of the PLF
Key Terms of the PLF include the following:
- Facility Amount -
$360 million , plus up to$25 million for capitalized interest prior to Project completion. - Interest – Interest rate being the Canadian Dealer Offered Rate, or CDOR, plus a margin of 4.25% pre-project completion, reducing to 3.75% post-completion.
- Fees – Customary Upfront and standby fees for a facility of this nature.
- Repayment and Maturity – Principal and capitalized interest will be repayable in quarterly installments over 6 years commencing one year following achievement of commercial production, with a repayment holiday during years 4 and 5 of production while the Company expects to undertake its expansion of the Project from phase 1 to phase 2. The PLF can be prepaid at anytime without penalty.
- Liquidity – Minimum required proceeds of
$10 million , Debt Service Reserve of principal and interest owing in the upcoming quarter. - Hedging - A defined amount of hedging is expected to be put in place in advance of the signing of a definitive credit agreement pending certain conditions being met, covering approximately 10% to 14% of total recovered gold production from the Project during the tenure of the PLF, in order to limit the Company's exposure to reductions in the gold price and in support of project economics.
The provision of the PLF will be subject to final credit approval, completion of final due diligence, the completion of the Company's Definitive Feasibility Study in respect of the Project, project finance documentation and other typical conditions precedent for a financing of this nature. The Company is targeting the execution of a definitive credit agreement by the end of Q3 2021.
Notwithstanding the above arrangement with
Obtaining terms that are approved by the respective credit committees prior to final permitting, and the definitive feasibility study (due mid-year) speaks to the robust and attractive economics of a staged development of the
The Company is looking forward to continuing to work with
Further updates will be provided in due course.
On behalf of the Board of Directors,
On behalf of the Board of Directors
"
Chairman and Chief Executive Officer
Neither the
Cautionary Note Regarding Forward-Looking Information
This news release contains certain "forward looking statements" and certain "forward-looking information" as defined under applicable Canadian and
Forward-looking statements and information are not historical facts and are made as of the date of this news release. These forward-looking statements involve numerous risks and uncertainties and actual results may vary. Important factors that may cause actual results to vary include without limitation, risks related to the ability of the Company to accomplish its plans and objectives with respect to the Project within the expected timing or at all; the timing and receipt of certain approvals, changes in commodity and power prices, changes in interest and currency exchange rates, risks inherent in exploration estimates and results, timing and success, inaccurate geological and metallurgical assumptions (including with respect to the size, grade and recoverability of mineral reserves and resources), changes in development or mining plans due to changes in logistical, technical or other factors, unanticipated operational difficulties (including failure of plant, equipment or processes to operate in accordance with specifications, cost escalation, unavailability of materials, equipment and third party contractors, delays in the receipt of government approvals, industrial disturbances or other job action, and unanticipated events related to health, safety and environmental matters), political risk, social unrest, and changes in general economic conditions or conditions in the financial markets. In making the forward-looking statements in this news release, the Company has applied several material assumptions, including without limitation, the assumptions that: (1) market fundamentals will result in sustained mineral demand and prices; (2) the receipt of any necessary approvals and consents in connection with the development of any properties; (3) the availability of financing on suitable terms for the development, construction and continued operation of any mineral properties; and (4) sustained commodity prices such that any properties put into operation remain economically viable. The actual results or performance by the Company could differ materially from those expressed in, or implied by, any forward-looking statements relating to those matters. Accordingly, no assurances can be given that any of the events anticipated by the forward-looking statements will transpire or occur, or if any of them do so, what impact they will have on the results of operations or financial condition of the Company. Except as required by law, the Company is under no obligation, and expressly disclaims any obligation, to update, alter or otherwise revise any forward-looking statement, whether written or oral, that may be made from time to time, whether as a result of new information, future events or otherwise, except as may be required under applicable securities laws.
SOURCE
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