Lydian International Secures $325 Million Financing for Amulsar

Lydian International (TSX:LYD) has entered definitive agreements for a $325 financing package for the construction of its Amulsar project in Armenia. The financing is to be provided by Orion Mine Finance and Resource Capital Funds.
As quoted in the press release:

The Financing commitments consist of a:

• $60 million gold and silver stream;
• $80 million equity private placement;
• $160 million term loan facility; and
• $25 million cost overrun facility.

The total financing requirement to fund construction of Amulsar is estimated to be $395 million, consisting of initial capital costs of $370 million plus an estimated $25 million for financing and other construction-period costs. The Financing (not including the cost overrun facility), along with an anticipated equipment lease facility of $70 million and public equity offering of a minimum of $25 million, is expected to fully finance construction of Amulsar. The cost overrun facility of $25 million is also provided in the event costs exceed the initial capital cost estimate. Funding under the Financing will occur in various stages and is subject to applicable conditions precedent. An initial $25 million deposit under the stream agreement will be provided upon satisfaction of customary closing conditions. With these funds, the Company will establish its engineering, environmental and social owner’s team and immediately transition to basic engineering.

Lydian president and CEO, Howard Stevenson, said:

This Financing is an important milestone in our commitment to all stakeholders to advance Amulsar to production. The economic enhancements from our recently announced value engineering work represented a major step toward our objective of optimizing project economics and underpinned the opportunity to complete this Financing. Orion and RCF are highly-respected mining finance investment funds, and over and above their financial commitments, each group brings added experience to our team.

Click here for the full press release.