Avesoro Resources Inc. (TSX: ASO) ("Avesoro" or the "Company"), the TSX and AIM listed West African gold producer, is pleased to provide an update on its project finance facilities and the extension until 30 January 2017 of the waiver and standstill agreement with Nedbank Limited and FirstRand Bank Limited (acting through its Rand Merchant Bank division) (collectively the "Lenders").
Highlights:
- Repayment of US$12.4 million of principal and US$4.0 million of interest that fell due on 14 December 2016 reducing the project finance debt outstanding to US$97.6 million;
- Extension of the waiver and standstill agreement until 30 January 2017; and
- Substantial progress made in the negotiation of a term sheet with the Lenders.
The Company and its majority shareholder have made substantial progress in the negotiation of a term sheet with the Company's Lenders which, if agreed, would re-profile future debt repayments and result in the relaxation of certain existing project finance covenants in exchange for a guarantee being provided.
The Company's Lenders have extended the default waiver and standstill agreement originally announced on 15 June 2016 and subsequently extended on 13 October 2016 until 30 January 2017 to allow additional time to complete due diligence on the guarantee being offered.
Should these negotiations not result in an amendment to the terms of the Company's project finance facilities, the Company believes that it will have sufficient cash resources to meet the existing debt repayment schedule, however it may be in breach of certain covenants once covenant testing recommences.
About Avesoro Resources Inc.
The Company's assets include the New Liberty Gold Mine in Liberia (the "New Liberty Gold Mine," "New Liberty" or the "mine") which has an estimated proven and probable mineral reserve of 8.5 Mt with 924,000 ounces of gold grading 3.4 g/t and an estimated measured and indicated mineral resource of 9,796 Kt with 1,143,000 ounces of gold grading 3.63 g/t and an estimated inferred mineral resource of 5,730 Kt with 593,000 ounces of gold grading 3.2 g/t. A Definitive Feasibility Study ("DFS") has been completed, the first gold pour has taken place and commercial production has been declared. The foregoing mineral reserve and mineral resource estimates and additional information in connection therewith are set out in the Company's technical report dated March 25, 2015 and entitled "New Liberty Gold Project, Bea Mountain Mining Licence Southern Block, Liberia, West Africa, Definitive Project Plan." The New Liberty Gold Mine is located within the Southern Block of the 100% owned Bea Mountain mining licence. This licence covers 478 km² and has a 25 year, renewable, mineral development agreement. The Bea Mountain mining license also hosts additional gold projects of Ndablama, Gondoja, Weaju and Leopard Rock which are the focus of exploration programs during 2016. Ndablama has an indicated mineral resource of 386,000 ounces of gold grading 1.6 g/t and inferred mineral resource of 515,000 ounces of gold grading 1.7 g/t and Weaju has an inferred mineral resource of 178,000 ounces of gold grading 2.1 g/t. The Yambesei (473 km2), Archaen West (56 km2), Mabong (36.6 km2) and Mafa West (15.6 km2) licences will also be subject to preliminary reconnaissance geological work. The foregoing mineral resource estimates and additional information in connection therewith are set out in the Company's technical report dated December 1, 2014 and entitled "Ndablama and Weaju Gold Projects, Bea Mountain Mining Licence, Northern Block, Technical Report on Mineral Resources" ("Ndablama and Weaju Technical Report 2014").
The Company also has a gold exploration permit in Cameroon.
Source: Avesoro Resources
