16 May 2019 07:00
NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, IN WHOLE OR IN PART, DIRECTLY OR INDIRECTLY, IN, INTO OR FROM ANY JURISDICTION WHERE TO DO SO WOULD CONSTITUTE A VIOLATION OF THE RELEVANT LAWS OR REGULATION OF SUCH JURISDICTION
16 May 2019
Trans-Siberian Gold plc
("TSG", the "Company", or the "Group")
Confirmation of Debt Financing
Trans-Siberian Gold plc (TSG.LN), a low cost, high grade gold producer in Russia, is pleased to confirm that the Company's wholly owned subsidiary ZAO Trevozhnoye Zarevo ("TZ") has entered into a loan facility agreement with VTB Bank ("VTB").
In accordance with the terms of the agreement, as announced on 3 May 2019, VTB will provide TZ with debt facilities (the "New Facilities") in an amount equal to ₽ 800 million (approximately £9.4 million) for a four-year term. The annual interest rate payable under the New Facilities is 10.7%, in line with market rates for Rouble denominated loans in Russia, reflecting the Central Bank of Russia's key lending rate currently standing at 7.75% per annum, and, as of April 2019, the annual rate of inflation at 5.1%.
As previously announced, the New Facilities are expected to be utilised by TZ to repay part of its indebtedness to the Company. The Company will in turn utilise the funds received from TZ to finance the buyback of 22,894,565 existing shares from two of the Company's major shareholders; UFG PE Fund I LP and Destin Investment Management Limited and to pay associated costs and expenses.
The Board has carefully evaluated financing options available for the Buyback and has taken into consideration the resulting debt leverage of the Group, which the Board deems to be a prudent and optimal long-term capital structure for TSG.
ENDS
Contacts: |
|
TSG Stewart Dickson | +44 (0) 7799 694195 |
Arden Partners plc Paul Shackleton / Alex Penney (Corporate Finance)Tim Dainton / Fraser Marshall (Equity Sales) | +44 (0) 207 894 7000 |
Hudson Sandler (Financial PR) Charlie Jack / Katerina Parker | +44 (0) 207 796 4133 |
About TSG
TSG is focused on low cost, high grade mining operations and stable gold production from its 100% owned Asacha Gold Mine in Far East Russia. The Company also holds the licence for the development and exploration of the Rodnikova deposit, one of the largest gold fields in South Kamchatka.
Additional information is available from the Company's website: www.trans-siberiangold.com
Market Abuse Regulations
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.
Disclaimer
This announcement contains "forward-looking statements" - that is, statements related to future, not past, events. In this context, forward-looking statements often address our expected future business and financial performance, and often contain words such as "expects," "anticipates," "intends," "plans," "believes," "seeks," "should" or "will." Forward-looking statements by their nature address matters that are, to different degrees, uncertain. For us, uncertainties arise from the behaviour of financial and metals markets, fluctuations in interest and/or exchange rates and metal prices; and from numerous other matters of national, regional and global scale, including those of a political, economic, business, competitive or regulatory nature. These uncertainties may cause our actual future results to be materially different that those expressed in our forward-looking statements.