AFRICAN BARRICK GOLD PLC: Project Financing for Bulyanhulu CIL Expansion
AFRICAN BARRICK GOLD PLC: Project Financing for Bulyanhulu CIL Expansion 22nd January 2013
African Barrick Gold plc (the "Company" or "ABG")
Completion of Project Financing for Bulyanhulu Process Plant Expansion * Attractive financing for key growth project * Continued progress on organic growth
ABG is pleased to announce that it has concluded negotiations with a syndicate of commercial banks, led by Standard Bank, for the provision of an export credit backed term loan facility ("Facility") for the amount of US$142 million. The Facility has been put in place to fund the bulk of the costs of the construction of one of our key growth projects, a new Carbon in Leach circuit at the process plant at Bulyanhulu ("Project"). The Facility is secured upon the Project, has a term of seven years and when drawn the spread over Libor will be 250 basis points.
Commenting on the financing, ABG CEO, Greg Hawkins, said: "The debt financing of the Bulyanhulu Process Plant Expansion is a clear example of the focus we have placed on efficient capital allocation. Whilst we have sufficient cash on the balance sheet to fund the expansion, we have decided to utilise a cost effective form of project financing to ensure we maintain maximum flexibility as we look to drive improved returns from our asset base.
For further information contact:
African Barrick Gold plc +44 (0)20 7129 7150 Andrew Wray, Head of Corporate Development & Investor Relations Giles Blackham, Investor Relations Manager
RLM Finsbury +44 (0)20 7251 3801 Faeth Birch
-0- Jan/22/2013 07:00 GMT