RNS Number : 5344I
Trans-Siberian Gold PLC
20 June 2017
 

 

Trans-Siberian Gold plc

 

("TSG" or the "Company")

 

$15 million Debt Re-Financing with VTB Bank

 

 

 

Trans-Siberian Gold plc (TSG.L) is pleased to announce that the Company's wholly owned subsidiary ZAO Trevozhnoye Zarevo ("TZ") has materially improved the terms of its debt facilities having agreed terms with VTB Bank. 

 

The new facility will be used to facilitate the repayment of TZ's existing two loan facilities, currently amounting to $14.8 million, and provide additional funds for working capital and other corporate purposes.

 

Highlights & Key Terms:

 

·      $15 million debt facility

·      5-year term

·      6.2% interest rate per annum

·      18 month capital repayment deferral

·      No royalty or hedging required

·      Reduces cost of debt and maintains flexibility for growth and development

 

Dmitry Khilov, CEO of TSG, commented:

 

"We are very pleased to have materially improved the terms of our debt facilities. I am grateful for the hard work of our finance team who have successfully negotiated improved terms which reduces our cost of borrowing. We maintain a low level of gearing and look forward to working with VTB Bank"

 

Further Information

 

TZ has entered into an agreement under which VTB Bank will provide a $15m facility for a 5 year term, repayable in equal amounts quarterly with the first repayment effective seven calendar quarters after initial drawdown.

 

 

The agreement contains customary representations and warranties from TZ to VTB Bank. There are certain financial obligations in the event of early repayment or breaches of covenants. In the event of default, the interest rate rises to 13.5% per annum. The debt facility is secured against the equity and fixed assets of TZ only. TZ is required to enter into an exclusive gold sales agreement with VTB Bank.

 

 

 

Ends

 

Contacts:

 

TSG

 

Simon Olsen

+44 (0) 7770 484965

Stewart Dickson

+44 (0) 7799 694195

 

 

 

Cantor Fitzgerald Europe

+44 (0) 207 894 7000

David Porter

David Foreman

Craig Francis       

 

 

The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014 ('MAR'). Upon the publication of this announcement via Regulatory Information Service ('RIS'), this inside information is now considered to be in the public domain.


This information is provided by RNS
The company news service from the London Stock Exchange
 
END
 
 
AGROKCDNKBKBBAD