G-Resources secures standby loan

Hong Kong-listed gold mining firm G-Resources Ltd. has announced that its Indonesian subsidiary PT Agincourt Resources had secured a US$100 million revolving credit facility from BNP Paribas (BNP), Hang Seng Bank Ltd (Hang Seng Bank) and Sumitomo Mitsui Banking Corporation (SMBC).

The company said on Monday that the facility would be available for Martabe project completion if required and for general corporate purposes thereafter.

All three banks are mandated lead arrangers. BNP is the Technical Bank, Hang Seng Bank is the Account Bank and SMBC is the facility and security agent.

The revolving credit is a two and a half year facility expiring on 30 June 2014 . The initial interest rate is LIBOR plus 4.5%. It will be reduced to LIBOR plus 4% when the Martabe Project is completed and satisfies the completion tests as agreed with the banks. There are no mandatory hedging requirements. Standard financing conditions for a credit agreement of this type apply to the Facility.

G-Resources has arranged the standby Facility for project capital purposes if required - and for working capital and general corporate needs. The Company at end October had some US$242 million in cash and liquid assets and this is expected to be sufficient to see the Martabe gold and silver project into production and operating cash flow. (romel)