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