Dundee Precious Metals takes up US$150 Million credit line
Dundee Precious Metals Inc.(DPM), owners of Namibia Custom Smelters, has entered into a long-term revolving credit facility of US$150 million with BNP Paribas, Canadian Imperial Bank of Commerce, European Bank for Reconstruction and Development, Raiffeisen Bank International AG, Royal Bank of Canada and Unicredit Bank AG.
The revolving facility comprises two tranches of US$125 million and US$25 million that mature in February 2016 and 2018, respectively, and is supported by guarantees from and pledges by the shares of the company’s wholly-owned operating subsidiaries.
According to a press statement, the interest rate is based on LIBOR plus a spread which varies between 2.75% and 4.25%, depending on the company’s financial indebtedness and adjusted earnings, as defined in the revolving facility. “This revolving facility provides us with a cost-effective and flexible source of funding and we are delighted with the strong support we received from our existing lenders and the new banks who participated in this transaction,” said Jonathan Goodman, DPM’s President and Chief Executive Officer.
“With this financing, our cash at hand and the strong cash flow we are generating, we are well positioned to fund our strategic initiatives. These include the upgrades being made at Namibia Custom Smelters, the gold pyrite circuit at Chelopech (Bulgaria), the drilling at Deno (Armenia) to support a potential mine expansion, and the development of the Krumovgrad (Bulgaria) gold project,” said Goodman.
DPM is a Toronto-based international gold mining company engaged in the acquisition, exploration, development, mining and processing of precious metals. The company’s principal operating assets include the Chelopech operation,which produces a gold, copper and silver concentrate, located east of Sofia, Bulgaria; the Deno Gold operation, which produces gold, copper, zinc and silver concentrate, located in southern Armenia; and the Tsumeb smelter, a concentrate processing facility.