Mill. oz gold loan secured by Barrick

According to Barrick, an initial drawdown of 750,000 oz has been made of which 212,000 oz has been used to repay the existing Goldstrike loan and the balance delivered against forward sales and put options arranged in 1988.

Net proceeds of $220 million(US) will fully fund the development of Goldstrike’s Betze and Upper Post deposits which host 128.4 million tons grading 0.095 oz gold per ton or 12 million oz.

The facility was underwritten by the Union Bank of Switzerland, Westpac Banking Corp. and The Royal Bank of Canada and syndicated with an additional seven major international banks.

The loan has an 8-year term extendable to 11 years with no principal repayments until Dec 1992. The initial interest rate has been set at 2.5% annually.

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