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    gold investing

    Leagold Announces Financings to Close with Brio Acquisition

    Nicole Rashotte
    May. 02, 2018 06:50AM PST
    Precious Metals

    Leagold Mining Corporation announced the following debt and equity financings have been arranged, subject to completion of its acquisition of Brio Gold Inc.

    Leagold Mining Corporation (TSX:LMC) announced the following debt and equity financings have been arranged, subject to completion of its acquisition of Brio Gold Inc. (TSX:BRIO).

    Highlights are as follows:

    • Leagold’s existing US$150 million senior secured credit facility has been amended to provide an additional US$100 million tranche of funding. The US$100 million tranche will have a term of 18 months and will be used to fully repay Brio’s US$75 million senior secured credit facility and the drawn amounts of Brio’s US$22 million of debt with a group of Brazilian banks.
    • Orion Resource Partners, through a fund it manages, has agreed to subscribe for, on a private placement basis, US$45 million worth of Leagold common shares at C$2.7143 per share. This investment is expected to result in Orion’s current ownership in Leagold being maintained, on a pro forma basis, at approximately 16 percent.

    Neil Woodyer, CEO, commented:

    We are very pleased with the strong support from Leagold’s current lenders – Orion, Societe Generale and Investec – in providing an 18-month debt package that refinances the existing debt of Brio and increases our working capital. We are also pleased with Orion’s decision to maintain its equity ownership level in Leagold at approximately 16 percent, which is consistent with Orion’s participation rights, through the subscription of US$45 million of equity at Leagold’s current market price.

    Later this year, and after the studies on the construction of a carbon-in-leach plant at the Los Filos mine are finalized, we expect to arrange a long-term and upsized financing structure with Societe Generale engaged as lead debt arranger. As part of the transaction, Investec has been mandated as Technical Agent for the lenders and will be working closely with Leagold as the studies are completed. Leagold’s growth projects include the Bermejal Underground expansion at the Los Filos mine, Brio’s restart of the Santa Luz mine, and the potential construction of a carbon-in-leach processing plant at the Los Filos mine that would enable higher recoveries for a wider range of ore types.

    Click here to read the full Leagold Mining Corporation (TSX:LMC) press release.

    private placementsociete generaleore typesgold investing
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