Victoria Gold Corp and BNP Paribas (BNPP) have executed a commitment letter for the debt financing transaction previously outlined in the company’s press release dated January 24, 2017. Pursuant to the Commitment Letter, BNPP has agreed, and has obtained credit approval, to underwrite 100% of the planned $220 million, senior secured project finance facility. As a result of BNPP’s underwriting commitment, syndication of the Loan Facility is neither a condition to closing nor a condition to funding.
“We look forward to continuing to work with BNPP through the construction and operation of the Eagle gold mine. This fully underwritten commitment is the result of a rigorous due diligence program undertaken by BNPP and their independent engineer, Roscoe Postle Associates Inc and represents additional third-party validation underscoring the exceptional quality of the Eagle gold project.“, commented John McConnell, President & CEO, “The Loan Facility with BNPP provides the majority of the required project funding and leaves the company with flexibility to source the remaining capital. The company will consider various alternatives to raise the balance of required project capital with the aim of minimizing dilution to our existing shareholders.”
The terms of the Loan Facility include:
- Tenor of 6.5 years
- Annual interest rate of LIBOR +4.50% pre-completion, falling to LIBOR +4.00% post completion.
Victoria Gold’s 100%-owned Dublin Gulch gold property is situated in the central Yukon Territory, Canada, approximately 375 km north of the capital city of Whitehorse, and approximately 85 km from the town of Mayo. The property is accessible by road year-round, and is located within Yukon Energy’s electrical grid. The Ccmpany has constructed and maintains a 210 person all-season camp at the project site.
The property covers an area of some 555 km2 and is the site of the company’s Eagle gold deposit. The Eagle mine is expected to be Yukon’s next operating gold mine and, between the Eagle and Olive deposits, include Proven and Probable Reserves of 2.7 Moz of gold from 123 Mt of ore with a grade of 0.67 g/t Au, as outlined in a NI 43-101 feasibility study. The NI 43-101 Mineral Resource for the Eagle and Olive deposits has been estimated to host 191 Mt averaging 0.65 g/t Au, containing 4.0 Moz of gold in the Measured and Indicated category, inclusive of Proven and Probable Reserves, and a further 24 Mt averaging 0.61 g/t, containing 0.5 Moz of gold in the Inferred category.
The shovel-ready Eagle gold project is the most advanced project in the region and is on track to be the largest gold mine in Yukon history. The mine will produce doré from a conventional open pit operation with a three-stage crushing plant, in-valley heap leach and CIL adsorption-desorption gold recovery plant.