VANCOUVER –UniCredit Group, a major European bank, has approved a US$62.5-million debt facility for Anatolia Minerals Development’s (ANO-T, ALIAF-O) 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 ceiling of US$62.5 million; above that amount, Uni- Credit 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.
The loan, together with cash and equivalents last reported at US$86 million as of 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 the first phase of the open-pit project, located about 110 km north of Malatya, in eastern 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 reserves of 41 million tonnes grading 1.65 grams gold per tonne and 3.65 grams silver.
Based on its last update of Copler’s economics in November 2008, Anatolia projects an internal rate of return of 28.1% at US$700 per oz. gold and US$12 per oz. silver. Cash costs are estimated at US$260 per oz. gold.
In November, Anatolia reported that construction was under way and it expected to commission Copler in 2011.
At presstime, Anatolia shares traded at $1.80 in a 12-month range of 65¢-$5.45. The company has 883 million shares outstanding.
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