22 Jun 2017 07:00
Trans-Siberian Gold plc
("TSG" or the "Company")
Additional $5m Debt Facility with VTB Bank
Trans-Siberian Gold plc (TSG.L) is pleased to announce that the Company's wholly owned subsidiary ZAO Trevozhnoye Zarevo ("TZ") has entered into an agreement with VTB Bank for an additional $5 million debt facility.
As with the $15 million re-financing which was announced on 20 June 2017, the terms of this new facility represent a material improvement on the terms of TZ's previous borrowing. The interest rate per annum has been reduced by approximately 30%.
Highlights & Key Terms:
· $5 million debt facility
· 3-year term
· 6.2% interest rate per annum
Dmitry Khilov, CEO of TSG, commented:
"We are very pleased to have secured an additional $5 million loan facility with VTB Bank. We have reduced the cost of debt which helps us to maintain flexibility for growth and development".
Further Information
The facility amounting to $5m is for a 3 year term, payable on the loan expiry date.
The agreement contains customary representations and warranties from TZ to VTB Bank. There are certain financial obligations in the event of early repayment or breaches of covenants. In the event of default, the interest rate rises to 13.5% per annum. The debt facility is secured against the equity and fixed assets of TZ only. TZ is required to enter into an exclusive gold sales agreement with VTB Bank.
Ends
Contacts:
TSG |
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Simon Olsen | +44 (0) 7770 484965 |
Stewart Dickson | +44 (0) 7799 694195
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Cantor Fitzgerald Europe | +44 (0) 207 894 7000 |
David Porter David Foreman Craig Francis |
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The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014 ('MAR'). Upon the publication of this announcement via Regulatory Information Service ('RIS'), this inside information is now considered to be in the public domain.