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Orvana Signs Term Sheet with Credit Suisse AG for US $50 Million Debt Financing |
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Wednesday, 28 July 2010 07:21 |
Orvana Minerals Corp. (“Orvana”) (TSX symbol: ORV) announced that it has signed a term sheet with Credit Suisse AG (“CS”) for a US $50 million five-year term corporate debt facility.
Funds will be used to complete construction of Orvana’s gold/copper project, El Valle-Boinás/Carlés (“EVBC”) in Spain and for general corporate purposes. Cost of the facility, including fees, are expected to average approximately 5 to 6 % per annum, based on current interest rates. The facility will include a small hedging program on the project, expected to be about 10% of Orvana’s overall expected gold production for 2012 to 2015 and about 25% of Orvana’s overall expected copper production from 2011 to 2015. The facility is subject to a “fatal flaw” level due diligence review, final credit approval and documentation with a closing expected by October 2010.
Orvana, in awarding the mandate to CS, engaged the services of Auramet Trading, LLC (“Auramet”) to assist in the solicitation and assessment of numerous financing proposals. Auramet, based in Fort Lee, New Jersey is an organization focused on the global metals and mining industries. Orvana would like to express its appreciation for the strong interest received from all of the banks proposing to finance the EVBC gold/copper project in Spain and looks forward to working with CS and Auramet to complete this transaction.
At March 31, 2010, Orvana had US$41.3 million in cash. After fully funding its capital requirements in Spain and Bolivia, Orvana expects to have substantial cash from its current cash and future cash flow for additional gold mining acquisitions. Orvana has no plans to issue equity at this time but will consider future equity financings as acquisition opportunities arise. |
