Vancouver – UniCredit Group, a major European bank, approved a US$62.5 million debt facility for Anatolia Minerals Development’s (ANO-T) Copler gold project in Turkey.
Anatolia had expected to get a US$70 million loan but the company says it decided to keep the facility at a US$62.5 million ceiling above which UniCredit required it to undertake a hedging program.
Interest on the loan will be the London interbank offered rate plus an unspecified margin.
Anatolia says it should meet debt drawdown requirements by the second quarter of 2009. Obligations include ensuring some gold price protection and the company says it should satisfy that with gold options on about 40,000 oz. gold at US$750-per-oz. gold.
The loan, together with cash and cash equivalents last reported at US$86 million Sept. 30, 2008, should bring it close to meeting Copler’s capital costs which Anatolia last pegged at just shy of US$170 million.
The amount would fully fund Phase I of the Copler open-pit project located about 110 km north of Malatya, Turkey.
During the phase Anatolia expects to mine about 1.3 million oz. gold at a rate of about 113,000 oz. gold a year over eight years. Copler has proven and probable reserves of about 41 million tonnes grading 1.65 grams gold per tonne and 3.65 grams silver per tonne.
Based on its last update of the Copler’s economics in November, 2008, Anatolia projects an internal rate of return of 28.1% at US$700 gold and US$12 silver. Cash costs are US$260-per-oz. gold.
In November Anatolia reported that construction was underway and it expected to commission Copler in 2011.
On news of the loan Anatolia’s share price had slid 20¢ to 1.95 at presstime. The company has about 83 million shares outstanding.
Be the first to comment on "Anatolia arranges US$62.5M loan"