(TSX.V: TLG)
RICHMOND, BC, Aug. 17 /CNW Telbec/ - Tagish Lake Gold Corp. (TSX.V - TLG)
is pleased to report that the Company has entered into an engagement and
mandate letter with Macquarie Bank Ltd. (Macquarie) to arrange a feasibility
finance debt facility and act as the exclusive arranger for project debt
finance and hedging facilities to fund the capital expenditures for the
Company's Skukum Creek gold-silver project in the Yukon, Canada. A technical
assessment of the pre-feasibility study and resource estimate, and property
visits have been undertaken by Macquarie personnel.
Macquarie is a diversified international provider of specialist
investment banking and financial services with over 8,200 employees in 24
countries. Headquartered in Sydney, Australia and listed on the Australian
Stock Exchange in 1996, Macquarie, is ranked as one of Australia's top 15
companies by market capitalization.
Pursuant to the terms of the arrangement, Macquarie will be engaged and
will have an exclusive mandate for a period of thirty-six months, extendable
at Tagish's option, to develop and secure appropriate debt funding with
respect to a feasibility finance facility and, if warranted, project debt
finance and hedging facilities.
The first phase of the engagement would be a C$2,000,000 feasibility debt
finance facility to provide the Company with funds for the completion of the
bankable feasibility study for the Company's Skukum Creek gold-silver project.
The draw down for the feasibility finance funds would be in two tranches, the
first being conditional on the production of an updated resource model
incorporating the results of the current drilling aimed at demonstrating the
targets envisaged in the prefeasibility study of Nov 2005 (See release Dec 6,
2000). This is scheduled for completion in the fall of 2006. The second
tranche would be made available conditional on successful progress being made
on the final feasibility study. The feasibility study is scheduled for
completion in early 2007. Environmental assessment, mineral processing, and
resource studies are all in progress.
"This is a significant development in the Company's history as it
provides us with financial backing from one of the industry's top
institutions. We are well on the way to reaching the project milestones we set
for the company, and with this support we feel the goal of production at
Skukum Creek is achievable within a time frame that will take advantage of the
current market conditions" said Mr. T. Gregory Hawkins, Chairman of Tagish
Lake Gold Corp.
About Tagish Lake Gold Corp.
Tagish Lake Gold Corp. explores for and develops high grade gold-silver
mineral deposits in the Yukon Territory of Canada. The Company is currently
focused on its wholly owned, 178 km2 Skukum Mineral District located 80 km by
road south of Whitehorse. The Skukum Mineral District hosts the Skukum Creek
gold-silver deposit and the Goddell Gully gold deposit, with a currently
defined measured plus indicated resource of 1,120,000 tonnes grading 8.0 g/t
Au and 153.1 g/t Ag (MineTech June 2003, available on Sedar); and the
Mt. Skukum gold deposit.
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This news release includes certain forward looking statements in respect
to various issues including upcoming events. These forward looking statements
are based upon current expectations which involve risks and uncertainties that
could cause actual outcomes and results to differ materially. Mineral
exploration is subject to a high degree of risk, which even a combination of
experience, knowledge, and careful evaluation may fail to overcome.
Exploration activities seldom result in the discovery of a commercially viable
mineral resource. Exploration activities are also expensive. The Company will
therefore require additional financing to carry on its business, and such
financing may not be available when it is needed. The Company disclaims any
obligation to revise any forward looking statements as a result of information
received after the fact or regarding future events.
