Translate
TORONTO, April 1 /CNW/ - Anatolia Minerals Development Limited ("Anatolia" or the "Company") (TSX:ANO) announces that it has closed the US$62.5 million senior project debt (the "Debt Facility") with Bayerische Hypo- und Vereinsbank AG, a member of UniCredit Group ("HVB") (see press release dated January 12, 2009). Proceeds from the Debt Facility will be used toward development of the Copler Gold Project in Turkey.
The Debt Facility matures on December 31, 2015 and there is no penalty for early repayment. Interest is variable based on the U.S. Dollar LIBOR rate plus 5.875% during construction. The Company may elect to fix the interest rate through an interest rate swap facilitated by HVB. Drawdown of the Debt Facility is contingent upon customary conditions precedent. Management anticipates all conditions precedent should be completed by the end of the second quarter 2009, clearing the way for drawdown. Among the required conditions precedent, the Company will be required to provide limited gold price protection during the initial ramp-up year of production of approximately 40,000 ounces of gold at an average strike price of US$750/ounce. The Company has already purchased 4,000 put options at a strike price of $800/ounce. No forward sales or other forms of fixed delivery obligations are anticipated under current market conditions.
Edward Dowling, President and CEO of Anatolia stated, "Along with internal sources, the HVB debt facility fully funds Anatolia for expected Copler construction costs and other operating needs during development. Copler will be a world class gold mine with cash costs expected in the lowest quartile. Our strategy is to grow to the mid-tier ranks by leveraging the initial phase at Copler into additional production growth, advance other internal projects and consider strategic opportunities."
Cutfield Freeman & Co Limited, London, England, acted as advisors to Anatolia on the transaction.
About Anatolia
Anatolia Minerals, recognized as a leader in exploration and development in Turkey, is developing its 100%-owned Copler Gold Project. Initial plans are to produce approximately 1.3 million ounces of gold at a cash cost of about $260 per ounce. The first gold pour at Copler is expected in early 2010 with full production of about 175,000 ounces of gold per year anticipated in 2011. Additional production expansion of the oxide and sulfide gold resource is expected at Copler by taking advantage of the inherent large resource through on-going technical activities. In addition, Anatolia holds a significant pipeline of prospective gold and base metal projects.
Anatolia currently has 114.7 million common shares issued and outstanding, 133.5 million fully diluted. Anatolia's common shares are listed for trading on the Toronto Stock Exchange under the symbol ANO.
Cautionary Statements
Certain statements contained in this news release constitute forward-looking information, future oriented financial information, or financial outlooks (collectively "forward-looking information") within the meaning of Canadian securities laws. Forward-looking information may relate to this news release and other matters identified in Anatolia's public filings, Anatolia's future outlook and anticipated events or results and, in some cases, can be identified by terminology such as "may", "will", "could", "should", "expect", "plan", "anticipate", "believe", "intend", "estimate", "projects", "predict", "potential", "continue" or other similar expressions concerning matters that are not historical facts and include, but are not limited in any manner to, those with respect to commodity prices, mineral resources, mineral reserves, realization of mineral reserves, existence or realization of mineral resource estimates, the timing and amount of future production, the timing of construction of the proposed mine and process facilities, capital and operating expenditures, economic conditions, availability of sufficient financing, and any and all other timing, development, operational, financial, economic, legal, regulatory, political factors that may influence future events or conditions. Such forward-looking statements are based on a number of material factors and assumptions, including, but not limited in any manner, those disclosed in any other Anatolia filings, and include the ultimate determination of mineral reserves, availability and final receipt of required approvals, titles, licenses and permits, sufficient working capital to develop and operate the proposed mine, access to adequate services and supplies, commodity prices, foreign currency exchange rates, interest rates, access to capital markets and associated cost of funds, availability of a qualified work force, lack of social opposition to the mine, and the ultimate ability to mine, process and sell mineral products on economically favorable terms. While we consider these assumptions to be reasonable based on information currently available to us, they may prove to be incorrect. Actual results may vary from such forward-looking information for a variety of reasons, including but not limited to risks and uncertainties disclosed in other Anatolia filings at www.sedar.com and other unforeseen events or circumstances. Other than as required by law, Anatolia does not intend, and undertakes no obligation to update any forward looking information to reflect, among other things, new information or futures events.