Business
Amerigo Closes Bank Financing for Phase Two of the Cauquenes Expansion
Vancouver, British Columbia--(Newsfile Corp. - August 4, 2017) - Amerigo Resources Ltd. (TSX:...
About this update from Amerigo Resources Ltd
[{"type":"text","content":"Amerigo Closes Bank Financing for Phase Two of the Cauquenes ExpansionVancouver, British Columbia--(Newsfile Corp. - August 4, 2017) - Amerigo Resources Ltd. (TSX: ARG) (\"Amerigo\" or the \"Company\") is pleased to announce that its wholly-owned subsidiary Minera Valle Central S.A. (\"MVC\") has closed the loan facility (the \"Phase Two Bank Facility\") with Banco Bilbao Vizcaya Argentaria (\"BBVA\") and Export Development Canada (\"EDC\") announced in the Company's July 31, 2017 press release, for funding of the second phase of the planned expansion of MVC's operations for the processing of tailings from the historic Cauquenes deposit (the \"Cauquenes Phase Two Expansion\"). MVC has provided security for the Phase Two Bank Facility in the form of a charge on all of MVC's assets, and MVC is subject to certain bank covenants to be measured semi-annually starting on December 31, 2017.The Phase Two Bank Facility will allow MVC to draw up to $35.3 million to fund the costs of the Cauquenes Phase Two Expansion, and is being provided as a new tranche of MVC's existing financing agreement with BBVA and EDC, through which the first phase of the Cauquenes expansion was financed. The Phase Two Bank Facility is scheduled to be repaid in six equal semi-annual installments commencing on June 30, 2019 and ending on December 31, 2021. The repayment schedule may be shortened without penalty in accordance with the provisions of the finance agreement. Interest for 75% of the facility will accrue at a fixed rate of 6.02% per annum, and the remaining 25% of the facility will be subject to a variable rate based on the US Libor 6-month rate, currently 4.82% per annum. Semi-annual interest payments will commence on December 31, 2017.The Cauquenes Phase Two Expansion will consist of the installation of additional flotation cells and associated plant required to increase recovery rates and enable MVC to reach an estimated annual production of 85 to 90 million pounds of copper, at an estimated cash cost of $1.40 to $1.60 per pound. The cost of the Cauquenes Phase Two Expansion including all recommended contingencies is estimated at $35.3 million. Construction of Phase Two is expected to be completed in Q3-2018.All amounts in this press release are in US dollars.About the Company:Amerigo Resources Ltd. is an innovative copper producer with a long-term re...