Eden Roc secures loan from U.S.

Marshall Minerals (ASE) and its subsidiary, Eden Roc Mineral (ASE), have secured a substantial loan to finance development at the Ivory Coast heap leach project.

Overseas Private Investment (OPIC), a U.S. government agency, has agreed to lend Somiaf, Eden Roc’s 90% owned subsidiary, $2 million for the project. The debt financing will be added to a US$2.5-million investment promised by the African Growth Fund earlier this year.

The OPIC loan will bear interest at 9.625%, is repayable over six years and will be secured by Somiaf’s machinery, equipment and gold proceeds. Closing is subject to completion of documentation, receipt of all necessary approvals in both Canada and the Ivory Coast and completion of the private placement with Africa Growth Fund.

Marshall will provide additional funds, if required, to bring the project into production at an average rate of 1,125 oz. gold per month.

As part of the deal, OPIC will receive warrants to purchase 600,000 common shares of Eden Roc at 70 cents per share for a period of three years and the right to purchase additional shares to hold a 2% equity interest in the company. Eden Roc traded recently at 50 cents.