Lydian International Ltd’s wholly owned Armenian operating subsidiary has entered into a secured credit facility with Caterpillar Financial Services (UK) for a maximum principal amount of $42 million. Proceeds of the Cat Term Facility will be used to purchase Cat® mobile mining equipment for Lydian’s 100%-owned Amulsar gold project in Armenia.
Construction at Amulsar started in October 2016; first gold production is expected during the first quarter of 2018.
This is just one of dozens of projects to be covered in the first issue of 2017 of International Mining Project News (published fortnightly) – ask [email protected] for more information on a subscription.
Howard Stevenson, Lydian’s President and CEO: “We have crossed another major milestone in the development of the Amulsar gold mine and are extremely pleased to have Cat Financial support our future mining operations.
The Cat Term Facility is available to be drawn in multiple advances through June 2018. Each advance will be repayable over a 75-month term, inclusive of a six-month initial repayment grace period. The Cat Term Facility bears an interest rate of Libor plus 4.5%. Principal security consists of specific equipment financed by Cat Financial. In addition, Lydian has provided an unsecured guarantee in favour of Cat Financial. All advances under the Cat Term Facility are subject to satisfaction of certain conditions. Endeavour Financial is acting as financial advisor to Lydian.
Lydian is a gold developer, focusing on construction at its 100%-owned Amulsar Gold Project, located in south-central Armenia. Amulsar presents an opportunity for a large scale, low cost operation with production expected to begin in 2018. Open pit mining and conventional heap leach processing contribute to excellent scale and economic potential. Amulsar will be Armenia’s largest gold mine, with estimated mineral resources containing 3 Moz (Measured and Indicated) and 2 Moz (Inferred). Gold production is targeted to average greater than 200,000 oz annually over an initial 10-year mine life. Existing mineral resources and open extensions provide opportunities to improve average annual production and extend the life of mine.