Perseus Mining Ltd (ASX:PRU, TSX:PRU, OTC:PMNXF) has received a strong endorsement of its multi-mine, multi-jurisdictional gold strategy in Africa by signing a US$300 million syndicated revolving corporate facility, which replaces the company’s existing US$150 million facility.
The increased facility from the refinancing from an upsized banking consortium is available for general corporate purposes, subject to the satisfaction of certain customary conditions.
International consortium
This consortium consists of six international banks - Macquarie Bank Limited from Australia; Nedbank Limited (acting through Nedbank Corporate and Investment Banking Division; Absa Bank (Mauritius) Limited; Citibank, NA, Sydney Branch; FirstRand Bank Limited (acting through Rand Merchant Bank Division); and Standard Bank of South Africa Limited (Isle of Man Branch).
Perseus’ managing director and CEO Jeff Quartermaine said: “Perseus is very pleased to continue to receive the strong support of a very high-quality group of international lenders at a time of significant uncertainty in global financial markets.
“A major endorsement”
"This support is regarded as a major endorsement of the underlying quality of our assets and future cashflows.”
Combined with the company’s net cash position on December 31, 2022, of US$405 million, it provides Perseus with more than US$705 million of available liquidity with a three-year tenure to March 31, 2026.
While gold production continues in West Africa, the company expects a final investment decision on the development of Meyas Sand Gold Project in Sudan later this year.
"In recent years, Perseus has successfully transformed its business to become a mid-tier, multi-mine, multi-jurisdictional producer of more than 500,000 ounces of gold per year,” Quartermaine said.
“Ongoing growth strategy”
"With the increased liquidity provided by our upsized debt facility, we are able to continue to strongly pursue our ongoing growth strategy that involves a balanced combination of organic and inorganic growth activities.
"In this regard, Perseus expects a Final Investment Decision later this year in relation to the fully funded development of our Meyas Sand Gold Project in northern Sudan.”
Perseus was advised in the refinancing by ICA Partners Pty Limited and Minter Ellison.
Terms of the facility are typical of a corporate line of credit of this type and quantum. Interest is payable on the loan at Secured Overnight Financing Rate (SOFR) plus a competitive credit margin.
The tenure of the refinanced debt facility is three years to March 31, 2026.