OceanaGold Corporation (TSX: OGC) (ASX: OGC) is pleased to announce it has completed contractual close on a refinance of its Revolving Credit Facility. The new Facility is supported by a group of six leading international banks including previous lenders Scotiabank, Citibank, BNP Paribas and Commonwealth Bank of Australia plus new entrants the Bank of Montreal (BMO) and the Canadian Imperial Bank of Commerce.
The Facility has been increased by $50 million from the previous $200 million facility, providing the Company with an additional undrawn $50 million in liquidity. The Facility maintains similar financial covenants to the previous facility while financing costs remain highly competitive. Under the terms and conditions of the Facility, the Company has retained financial flexibility for further permitted indebtedness for additional funding if required. Finally, the refinanced Facility has a maturity date of December 31, 2024.
Michael Holmes, President and CEO of OceanaGold said, “We are very pleased to further strengthen our balance sheet through refinancing our Revolving Credit Facility with a highly reputable and global banking group. The new Facility provides increased liquidity and enhanced business flexibility with the Facility maturity to the end of 2024. We appreciate the long-standing support of our existing lenders and are pleased to welcome two new lenders that we collectively view as valued business partners.”
“With the previous equity raise, the refinancing of our Facility, and anticipated operating cash flows we are well positioned to continue managing near-term risks while making prudent investments to advance our significant and exciting organic growth pipeline. We remain acutely focused on delivering on our operational and financial plans while continuing to successfully develop our growth projects through to production.”
“Looking ahead to 2021 and notwithstanding the ongoing challenges related to COVID-19 in the Carolinas, we are expecting continued operational improvements at Haile with mining of higher-grade zones expected to continue through the first half of the year. We are also planning to commence development of the Haile underground mine in the second half of the year, which we see as a positive catalyst that when in production, provides for an additional source of high-grade ore feed into the processing plant.”
“In New Zealand, Martha Underground is progressing toward first production which we expect in the second quarter of 2021. We are also looking ahead to steady production from Macraes while developing the new underground at Golden Point ahead of first production a year from now. Exploration will remain a key attribute of the OceanaGold story and we will continue extensive exploration drilling across our business particularly at the high-grade WKP and Martha Underground deposits. In the Philippines, we will continue to work with the Philippine National Government to complete the FTAA renewal process and we look forward to meeting soon with government agencies.”
“With a stronger balance sheet, continued operational improvements and advancement of organic growth projects, we are well positioned to create long-term shareholder value.”
OceanaGold is a multinational gold producer committed to the highest standards of technical, environmental and social performance. For 30 years, we have been contributing to excellence in our industry by delivering sustainable environmental and social outcomes for our communities, and strong returns for our shareholders. Our global exploration, development, and operating experience has created an industry-leading pipeline of organic growth opportunities and a portfolio of established operating assets including Didipio Mine in the Philippines; Macraes and Waihi operations in New Zealand; and Haile Gold Mine in the United States of America.
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