GeoProMining raises US$250,000,000 syndicated club term loan facility

YEREVAN, March 25. /ARKA/. GeoProMining (“GPM”) has raised a debut 5-year USD 250,000,000 Term Loan Facility via a club of banks for repayment of GPM’s current indebtedness and capital investments, Novosti-Armenia agency reported Monday referring to Prime. 

The financing was arranged by Raiffeisen Bank International AG (“RBI AG”) and ZAO Raiffeisenbank (“RBRU”) (together “RBI Group”), Sberbank of Russia (acting through its Sberbank CIB and Sberbank Switzerland A.G., “Sberbank“) and ZAO UniCredit Bank and UniCredit Bank AG, London (“UniCredit Bank”) (jointly “Mandated Lead Arrangers”). UniCredit Bank AG, London acted as Facility and Security Agent for the facility, Sberbank of Russia acted as Local Security Agent, Prime said referring to the company.

“We aimed at creating a solid platform for long-term relations with the banks, which we plan to expand in the course of our strategic development. It includes both organic growth and M&A in the regions, which are of particular interest for us, e.g. Turkey. Moreover, GeoProMining will analyze possibilities of the debt and equity markets,” said GPM President Roman Khudoliy.

According to him, this March the company has accomplished several strategic objectives: while signing the loan facility GPM also closed a hedge deal for 270,000 ounces of gold, which is part of the company’s financial hedging strategy.

GeoProMining, founded in 2001, is an international, privately held company with a diversified base of gold and other metals assets. GeoProMining is engaged in mining activities in Armenia and the Russian Federation. In Armenia GeoProMining owns two companies – the Agarak Copper and Molybdenum Plant and GPM Gold company developing the Sotk gold mine and managing the Ararat gold factory. -0-