Gold Road Resources has been granted a $100 million revolving corporate facility, $50 million dedicated working capital facility and gold hedging agreement from a financing syndicate.
The funds are to go towards the continued exploration of the Western Australia-based company’s Yamarna tenements and Gruyere joint venture (a 50:50 project with Gold Fields), and will also help to aid its transition from gold explorer to gold producer.
The syndicate agreement includes ING Bank Australia, National Australia Bank and Société Générale Hong Kong, collectively referred to as the finance facilities.
“These finance facilities are a prudent move as we transition the company from being an explorer with a development asset to an Australian mid-tier gold producer with significant exploration upside and the financial capability and flexibility to grow further,” said Ian Murray, managing director and chief executive officer of Gold Road.
The CEO said the financing facilities would provide a strong platform for continued exploration across all company tenements, with the discretionarily gold hedging capacity affording Gold Road greater flexibility to manage gold price risk exposures.
“The financing syndicate provided these facilities on very competitive pricing and terms because of the quality of the Gruyere, project, our highly regarded JV partner and manager, and the advanced stage of construction.”
The finance facilities could also be used to help finance future business opportunities, including the potential $7 million purchase of Sumitomo Metal Mining Oceania’s 50 per cent interest in the South Yamarna project.