GoGold Resources Closes US$50-million Revolving Credit Facility

GoGold Resources Inc. (TSX:GGD) announced that it’s closed a US$50-million Senior Secured Revolving Credit Facility (Revolver). The Revolver is with the Bank of Montreal, and has a floating interest rate currently estimated at about 2.2 to 3.45 percent.
As quoted in the press release:

The Revolver will be used to retire the existing credit facility with Orion Mine Finance of approximately US$23.5 million that bears interest at a higher rate of 7.5%. The remainder of the funds, once drawn, will go towards the construction of the Company’s Santa Gertrudis gold mine in Sonora State, Mexico.

Dana Hatfield, CFO of GoGold, commented:

Obtaining financing at this low cost of capital is a true testament to and validation of the Parral project’s performance. This project continues to produce strong free cash flow at today’s depressed metal prices due to its low cash costs, which are some of the lowest amongst silver producers. Today’s financing also means we are now able to advance our Santa Gertrudis project without any shareholder dilution.

Terry Coughlan, president and CEO of GoGold, said:

With this Revolver and free cash flow from our Parral project, we are now fully funded and in a position to start constructing the Santa Gertrudis project. We are currently advancing the project towards construction and expect to break ground in the fall of this year. Santa Gertrudis is an outstanding project which aligns well with our corporate strategy of acquiring and developing low capex and high margin projects.

Click here to read the full GoGold Resources Inc. (TSX:GGD) press release.