Lydian Armenia to channel Ameriabank $24 million loan into development of Amulsar
24.11.2016,
18:52
Lydian International Limited said its wholly owned Armenian operating subsidiary it has entered into a US$24 million secured credit facility with Ameriabank CJSC.
YEREVAN, November 24. /ARKA/. Lydian International Limited said its wholly owned Armenian operating subsidiary it has entered into a US$24 million secured credit facility with Ameriabank CJSC. According to a company press release, proceeds of the facility will be used for equipment purchases at Lydian's 100%-owned Amulsar Gold Project in Armenia. Construction at Amulsar started in October 2016; first gold production is expected during the first quarter of 2018.
Howard Stevenson, Lydian's President and CEO, commented: "We are extremely pleased to put in place this portion of the financing for Amulsar with Ameriabank. Lydian is now within US$50 million of its total Amulsar financing plan of at least US$420 million. We expect to fill this remaining amount with other equipment financing facilities, which are well advanced at this time. Ameriabank is the largest bank in Armenia, and will be among our most valued in-country partners."
"Ameriabank is proud to support this exciting development in the mining sector in Armenia, which will be a boosting factor for the mining sector and Armenian economy in general. We are looking forward to a long relationship with the Lydian team," said Gagik Sahakyan, Director, Corporate Banking.The Ameriabank Facility is available in multiple tranches; an initial advance of US$10 million is expected to be drawn as early as December 2016. Each tranche will be repayable over a 10-year period from the date of advance, including an initial principal grace period of one year. The Facility bears an interest at Libor plus 8.75%.
A commitment fee of 2% will apply to any undrawn portion of the Facility. The principle security consists of specific equipment financed by Ameriabank. In addition, Lydian has provided an unsecured guarantee in favor of Ameriabank. All advances under the Facility are subject to satisfaction of certain conditions. Endeavour Financial is acting as financial advisor to Lydian.
Ameriabank CJSC is one of the leading universal banks in Armenia offering corporate, retail and investment banking services in a comprehensive package of banking solutions. Founded as investment and corporate bank, Ameriabank has become the leader of corporate lending of the Armenian economy since 2010.
Lydian is a gold developer, focusing on construction at its 100%-owned Amulsar Gold Project, located in south-central Armenia. Amulsar presents an opportunity for a large scale, low cost operation with production expected to begin in 2018. Open pit mining and conventional heap leach processing contribute to excellent scale and economic potential.
Amulsar will be Armenia's largest gold mine, with estimated mineral resources containing 3 million measured and indicated ounces and 2 million inferred ounces. Gold production is targeted to average greater than 200,000 ounces annually over an initial 10 year mine life. Existing mineral resources and open extensions provide opportunities to improve average annual production and extend the mine life. The Company is committed to good international industry practices in all aspects of its operations including production, sustainability, and corporate social responsibility. -0-
Howard Stevenson, Lydian's President and CEO, commented: "We are extremely pleased to put in place this portion of the financing for Amulsar with Ameriabank. Lydian is now within US$50 million of its total Amulsar financing plan of at least US$420 million. We expect to fill this remaining amount with other equipment financing facilities, which are well advanced at this time. Ameriabank is the largest bank in Armenia, and will be among our most valued in-country partners."
"Ameriabank is proud to support this exciting development in the mining sector in Armenia, which will be a boosting factor for the mining sector and Armenian economy in general. We are looking forward to a long relationship with the Lydian team," said Gagik Sahakyan, Director, Corporate Banking.The Ameriabank Facility is available in multiple tranches; an initial advance of US$10 million is expected to be drawn as early as December 2016. Each tranche will be repayable over a 10-year period from the date of advance, including an initial principal grace period of one year. The Facility bears an interest at Libor plus 8.75%.
A commitment fee of 2% will apply to any undrawn portion of the Facility. The principle security consists of specific equipment financed by Ameriabank. In addition, Lydian has provided an unsecured guarantee in favor of Ameriabank. All advances under the Facility are subject to satisfaction of certain conditions. Endeavour Financial is acting as financial advisor to Lydian.
Ameriabank CJSC is one of the leading universal banks in Armenia offering corporate, retail and investment banking services in a comprehensive package of banking solutions. Founded as investment and corporate bank, Ameriabank has become the leader of corporate lending of the Armenian economy since 2010.
Lydian is a gold developer, focusing on construction at its 100%-owned Amulsar Gold Project, located in south-central Armenia. Amulsar presents an opportunity for a large scale, low cost operation with production expected to begin in 2018. Open pit mining and conventional heap leach processing contribute to excellent scale and economic potential.
Amulsar will be Armenia's largest gold mine, with estimated mineral resources containing 3 million measured and indicated ounces and 2 million inferred ounces. Gold production is targeted to average greater than 200,000 ounces annually over an initial 10 year mine life. Existing mineral resources and open extensions provide opportunities to improve average annual production and extend the mine life. The Company is committed to good international industry practices in all aspects of its operations including production, sustainability, and corporate social responsibility. -0-
