GoGold arranges financing for Parral Tailings Project
GoGold Resources Inc. announced that it has arranged for financing of its Parral Tailings Project located in Chihuahua State Mexico. The company has entered a definitive agreement for US$35 million with Red Kite Mine Finance Funds and US$5 million with CAT Financial.
The Red Kite financing package comprised both equity and debt components. The equity component amounted to US$5 million. The price for this component will be based on the 20-day volume weighted average stock price, preceding the closing date, at 5% premium. On the other hand, the loan component amounted to US$30 million at Libor plus 6.5%. This will be paid equally per quarter over three years starting on September 30, 2014.
Meanwhile, the financing from CAT Financial amounted to US$5 million, with an interest ranging between4.5 and 4.5%. This is in way of leasing equipment. The loan will be payable for three years.
Together with GoGold's existing treasury, the funds from the Red Kite and CAT Financial would amount to a total of US$55 million. US$35 million was expected as capital expenditure for the Parral Tailings Project, whereas about US$20 million will be used for other growth opportunities.
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