In September 2017 the Company carried out a rights issue as a result of which the Company received cash proceeds of approximately 67.9 MSEK before transaction costs. The proceeds from the rights issue were applied towards upgrading the Company's production facilities at Tardan and the first stage of construction of the Carbon-In-Leach (CIL) plant at Tardan. As stated at the time, this investment was made in order to significantly increase recovery of gold from ore and increase life of mine, profitability and future cash flows from this project.
Since the beginning of 2018, the Company has been seeking to optimise its overall financing arrangements for its Tardan and Kara-Beldyr projects. For completion of the CIL plant at Tardan the Company has entered into negotiations with providers of debt financing, and has now received heads of terms from its main bank finance provider, VTB, to extend an additional US$ 6.5 mln for up to 6 years which will cover substantially all the remaining capital expenditure required to complete the CIL construction within the planned timetable for first production in Q1 2019.
In parallel, the Company also is in advanced stage of negotiations with leasing companies which provides a reasonable ground to believe that the Company will obtain leasing financing for Tier 1 equipment - mills, radial thickener, tanks and press-filters - in a total amount of some US$ 3.2 mln.
On the basis that the abovementioned debt and lease financing will cover substantially all the financing requirements for the CIL construction at Tardan, the Company intends, subject to finalization of these arrangements, to allocate all the cash proceeds from the exercise of Warrants in March 2018 (not including conversion of shareholder debt) to the engineering studies and the design of the Kara-Beldyr project, aiming to complete this stage of work on this project by the original timetable of Q3 2019.
Sergey Ustimenko, Chief Executive, said, "We have worked hard over recent months to broaden our financing options for the development of the Company's assets and we are pleased to report the progress that has been made to date. The Warrant exercise in March 2018 marks the final stage of the financing launched in August 2017, which has provided a solid foundation for moving forward with our strategy for unlocking the value in the Company's assets."
For more information, please contact:
Sergey Ustimenko, CEO
tel: +7 495 109 02 82
e-mail: sergey.ustimenko@auriant.com
Company name: Auriant Mining AB
Short name: AUR
ISIN-code: SE0001337213
Website: www.auriant.com
Twitter: @auriantmining
Auriant Mining AB (AUR) is a Swedish junior mining company focused on gold exploration and production in Russia, primarily in Zabaikalye and the Republics of Khakassia and Tyva. The company has currently four assets, including two operating mines (Tardan and Solococon), one early stage exploration asset and one development asset.
Since July 19, 2010, Auriant Mining's shares are traded on First North Premier at the NASDAQ OMX Nordic Exchange under the short name AUR. For more information please visit www.auriant.com. Mangold Fondkommission is Certified Adviser to Auriant, for more information please call +46 8 503 015 50 or visit www.mangold.se.
This information is information that Auriant Mining AB is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact persons set out above, at 10:00 CET on March 16th , 2018.
Cautionary Statement: Statements and assumptions made in this report with respect to Auriant Mining AB's ("AUR") current plans, estimates, strategies and beliefs, and other statements that are not historical facts, are forward-looking statements about the future performance of AUR. Forward-looking statements include, but are not limited to, those using words such as "may", "might", "seeks", "expects", "anticipates", "estimates", "believes", "projects", "plans", strategy", "forecast" and similar expressions. These statements reflect management's expectations and assumptions in light of currently available information. They are subject to a number of risks and uncertainties, including, but not limited to, (i) changes in the economic, regulatory and political environments in the countries where AUR operates; (ii) changes relating to the geological information available in respect of the various projects undertaken; (iii) AUR's continued ability to secure enough financing to carry on its operations as a going concern; (iv) the success of its potential joint ventures and alliances, if any; (v) exchange rates, particularly between the Russian rouble and the U.S. dollar. In the light of the many risks and uncertainties surrounding any gold production and exploration company at an early stage of its development, the actual results could differ materially from those presented and forecast in this report. AUR assumes no unconditional obligation to immediately update any such statements and/or forecasts
This press release shall not, directly or indirectly, be released, published or distributed in or to the United States, Australia Japan, Canada, New Zealand, Hong Kong, South Africa or other country where such action as a whole or in part is subject to legal restrictions. Nothing in this press release should be considered as an offer to invest or otherwise trade in shares of Auriant Mining AB (publ). The proposed issue will not be directed at residents or those living in the United States, Australia, Japan, Canada, New Zealand, Hong Kong, South Africa or other country where such action would require further prospectus, other offering documentation, registration or other measures beyond those required by Swedish law. No securities will be registered under the United States Securities Act of 1933, a similar law in any state in the United States, or under any provincial law in Canada, nor under the applicable law of another country.
PDF_Press release - CIL debt financing - March 2018
