Avesoro Re­sources ar­ranges $35M (U.S.) loan fa­cil­ity

Stockwatch Daily - - FRONT PAGE - Mr. Loudon Owen re­ports

AVESORO RE­SOURCES Inc. has en­tered into a $35-mil­lion (U.S.) loan fa­cil­ity with its ma­jor­ity share­holder, Avesoro Jersey Ltd.

Un­der the terms of the agree­ment, the com­pany may draw down up to $35-mil­lion (U.S.) in mul­ti­ple tranches at the com­pany’s dis­cre­tion be­fore Dec. 31, 2020, with funds avail­able for gen­eral work­ing cap­i­tal pur­poses. The fa­cil­ity is un­se­cured and ranks sub­or­di­nated to the com­pany’s ex­ist­ing fa­cil­i­ties. In­ter­est will be charged on drawn amounts at a fixed rate of 3.75 per cent per an­num. The fa­cil­ity is due to be re­paid in full no later than Dec. 31, 2022, and has no early re­pay­ment penalty.

To date, the com­pany has drawn down $16.6-mil­lion (U.S.) of the fa­cil­ity to meet li­a­bil­i­ties aris­ing on the ter­mi­na­tion of legacy pro­cure­ment con­tracts, make ad­vanced pay­ments to sup­pli­ers to se­cure lower unit cost pric­ing and to ac­cel­er­ate the ac­qui­si­tion of cap­i­tal items that will in­crease process plant through­put.

Re­lated-party trans­ac­tion

Avesoro Jersey is the com­pany’s ma­jor­ity share­holder (73.5 per cent of the com­pany’s is­sued share cap­i­tal). As a re­sult, en­ter­ing into the loan fa­cil­ity con­sti­tutes a re­lated-party trans­ac­tion un­der the Al­ter­na­tive In­vest­ment Mar­ket rules. The in­de­pen­dent di­rec­tors of the com­pany, con­sist­ing of David Nether­way, Jean-Guy Martin and Loudon Owen con­sider, hav­ing con­sulted with the com­pany’s nom­i­nated ad­viser, that the terms of the trans­ac­tion are fair and rea­son­able in­so­far as its share­hold­ers are con­cerned.

Loudon Owen, the com­pany’s lead di­rec­tor, com­mented:

“The turn­around in op­er­a­tions since the changes in man­age­ment and con­trol of the com­pany in July, 2016, has been very im­pres­sive. This ad­di­tional fund­ing fa­cil­ity from our ma­jor share­holder pro­vides the com­pany with ad­di­tional flex­i­bil­ity to fur­ther re­duce costs, maximize mar­gins and ac­cel­er­ate the elim­i­na­tion of legacy is­sues. This ad­di­tional sup­port from our ma­jor­ity share­holder clearly un­der­lines their com­mit­ment to the long-term suc­cess of Avesoro Re­sources.”

About Avesoro Re­sources Inc.

The com­pany’s as­sets in­clude the New Lib­erty gold mine in Liberia, which has an es­ti­mated proven and prob­a­ble min­eral re­serve of 8.5 mil­lion tonnes with 924,000 ounces of gold grad­ing 3.4 grams per tonne, an es­ti­mated mea­sured and in­di­cated min­eral re­source of 9,796 kilo­tonnes with 1,143,000 ounces of gold grad­ing 3.63 grams per tonne, and an es­ti­mated in­ferred min­eral re­source of 5,730 kilo­tonnes with 593,000 ounces of gold grad­ing 3.2 grams per tonne. A de­fin­i­tive fea­si­bil­ity study has been com­pleted, the first gold pour has taken place and com­mer­cial pro­duc­tion has been de­clared.

Qual­i­fied per­sons

The com­pany’s qual­i­fied per­son is Mark J. Pryor, who holds a BSc (hon­ours) in ge­ol­ogy and min­er­al­ogy from Aberdeen Univer­sity, United King­dom, and is a fel­low of the Ge­o­log­i­cal So­ci­ety of Lon­don, a fel­low of the So­ci­ety of Eco­nomic Ge­ol­o­gists and a reg­is­tered pro­fes­sional nat­u­ral sci­en­tist (PrS­ciNat) of the South African Coun­cil for Nat­u­ral Sci­en­tific Pro­fes­sions. Mr. Pryor is an in­de­pen­dent tech­ni­cal con­sul­tant with over 25 years of ex­ten­sive global ex­pe­ri­ence in ex­plo­ration, min­ing and mine devel­op­ment, and is a qual­i­fied per­son as de­fined in Na­tional In­stru­ment 43-101 stan­dards of dis­clo­sure for min­eral projects of the Cana­dian Se­cu­ri­ties Ad­min­is­tra­tors, and has re­viewed and ap­proves this press re­lease.

We seek Safe Har­bor.

Ge­off Eyre, Mehmet Nazif Gu­nal, Jean-Guy Martin, David G Nether­way, Loudon Frank Owen, Ser­han Umurhan

(ASO) Shares: 5,324,759,001

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