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Edgewater Exploration Ltd.(TSXV:EDW) announced entering into a mandate letter with two lenders for up to $120 million of project financing. The new financing will help develop the Corcoesto Gold project in Galicia, Spain.
As quoted in the press release:
The key terms of the mandate letter are up to $120 million of senior debt for a term of up to seven years. The interest rate is LIBOR (London Interbank Offer Rate) based, loan repayments are quarterly and there is a prepayment provision of a portion of excess free cash flow.
Edgewater Exploration, President and CEO, George Salamis, stated:
This is a major milestone for Edgewater to be able to arrange a very substantial portion of the estimated $160 million capital financing needed for the Corcoesto Gold Project. Edgewater continues to progress with the Bankable Feasibility Study which is expected to be completed during Q4, 2012. We believe that the bank’s involvement in the financing of Corcoesto, is a testament to the project’s future ability to produce gold at a reasonable cost and return, in addition to the local support for the project demonstrated at the ground level in Galicia, Spain.
Click here to read the Edgewater Exploration Ltd. (TSXV:EDW) press release
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