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Banro Corp. (TSX:BAA,NYSEMKT:BAA) announced that it’s closed US$67.5 million of a previously announced financing. The financing represents a gold streaming transaction for the Twanziga mine.
Banro Corp. (TSX:BAA,NYSEMKT:BAA) announced that it’s closed US$67.5 million of a previously announced financing. The financing represents a gold streaming transaction for the Twanziga mine.
As quoted in the press release:
The balance of the Financing previously announced, comprising a US$22.5 million term loan to be funded by [RFW Banro Investments Limited (RFWB)] and investment funds managed by Gramercy Funds Management LLC (“Gramercy”) and an US$8.75 million equity private placement to RFWB, is expected to close before the end of February 2016. The purchase by RFWB from Gramercy of US$40 million of the outstanding Banro senior secured notes issued by Banro on March 2, 2012 (the “Senior Notes”) and US$20 million of the outstanding preferred shares issued by subsidiaries of Banro on February 28, 2014, is also expected to close concurrently with the closing of the said term loan and equity private placement transactions.
Proceeds from the Twanziga transaction will be used for:
- Defeasement of the remaining three interest payments under the Senior Notes (such payments totaling approximately US$26.23 million).
- Repayment of a DRC bank loan facility nearing maturity and certain major project suppliers.
- Certain capital expenditures at the Twangiza mine to expand crushing capacity.
- General corporate and working capital purposes.
Click here to read the full Banro Corp. (TSX:BAA,NYSEMKT:BAA) press release.