Perseus Mining Limited, an African-focused gold producer, announced the refinancing of its preexisting syndicated debt facility to a US$300 million revolving corporate facility.
According to Perseus, the expanded facility is available for general corporate purposes, subject to certain customary limitations. When combined with Perseus’s net cash position as of 31 December 2022 of US$405 million, it provides the Company with more than US$705 million of available liquidity.
The upsized banking consortium consists of six international banks, including Macquarie Bank Limited from Australia; Nedbank Limited (acting through its Nedbank Corporate and Investment Banking Division); Absa Bank (Mauritius) Limited; Citibank, N.A., Sydney Branch; FirstRand Bank Limited (acting through its Rand Merchant Bank Division); and Standard Bank of South Africa Limited (Isle of Man Branch).
Perseus Managing Director and CEO Jeff Quatermaine stated that Perseus is receiving solid support from international lenders, which is a validation of its assets and future cashflows.
“In recent years, Perseus has successfully transformed its business to become a mid-tier, multi-mine, multijurisdictional producer of more than 500,000 ounces of gold per year. 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,” Quatermaine said.
He added, “ 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 31 March 2026.”
