Crescent Gold repays project loan debt
posted on
May 09, 2008 06:14AM
Target mid 2009 to recommence production
Crescent Gold repays project loan debt
2008-05-09 06:38 ET - News Release
Mr. Roland Hill reports
CRESCENT GOLD LIMITED: PROJECT LOAN FACILITY REPAID; CRESCENT SUBSTANTIALLY DEBT FREE
Crescent Gold Ltd.'s board has resolved to take advantage of the downturn in the gold price to repay its project loan facility (including a gold loan) with Investec (Investec Bank Australia Ltd.).
The loan facility at inception in October 2006 was a $20-million gold loan, and $5-million cash loan and additionally a bond (guarantee) facility of $4-million. The company has repaid both the gold loan and cash loan, leaving a cash-backed bond facility with Investec. The release from the loan facility frees the company to mine and process additional ore from minor pits and stock piles not part of the previously bank approved life of mine plan. The company has assessed this ore as economic.
The close out amount (principal and interest) of the gold loan (after repayments to date) was a cost of $17,901,709 and the cash loan $3,632,878. All security over the Laverton gold project will be released.
The company wishes at this point to also restate its hedge book which was incorrectly reported in the quarterly report for the period ended March 31, 2008.
The actual mark to market on Crescent's hedge book as at 31 March 2008 was:
The company has no exposure to committed gold and retains downside protection at $860 and $850 per ounce.
We seek Safe Harbor.