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(All figures in US Dollars unless otherwise stated)
MELBOURNE, Australia, June 27, 2014 /CNW/ - OceanaGold Corporation (TSX: OGC, ASX: OGC, NZX: OGC) (the "Company") is pleased to announce it has completed an agreement for a $200 million corporate revolving credit facility (the "new facility") to replace existing facilities, due to mature on 30 June 2015.
The new facility will be used to repay the existing term facility of $117.8 million and replaces the existing undrawn revolving credit facility of $50 million. It is financed by the Company's banking syndicate comprising: Barclays Bank, BNP Paribas, Citibank N.A., HSBC, Nedbank Capital PLC.
The new facility which matures on 30 June 2017 has competitive financial terms and maintains standard corporate debt covenants.
Mick Wilkes, Managing Director and CEO said OceanaGold was pleased to finalise the agreement as it looks to continue to strengthen its balance sheet by repaying debt and increasing its cash position. The new facility also provides for additional liquidity and flexibility which can be used, as necessary, for general corporate purposes.
"The completion of this agreement demonstrates the confidence our banking syndicate has in our operational and financial performance to date and into the future. We appreciate their support and we look forward to continuing our relationship as we focus on enhancing shareholder value," he said.
Legal advice to the Company was provided by Allens and to the banking syndicate by Gilbert + Tobin Lawyers.
OceanaGold Corporation is a significant multinational gold producer with mines located on the South Island of New Zealand and in the Philippines. The Company's assets encompass New Zealand's largest gold mining operation at the Macraes goldfield in Otago which is made up of the Macraes Open Pit and the Frasers Underground mines. Additionally, on the west coast of the South Island, the Company operates the Reefton Open Pit mine. OceanaGold'sDidipio Mine in northern Luzon, Philippines commenced commercial production on 1 April 2013 and is expected to produce 100,000 ounces of gold and 14,000 tonnes of copper per year on average over the next 15 years. In 2014, the Company expects to produce 275,000 to 305,000 ounces of gold from the combined New Zealand and Philippine operations and 21,000 to 24,000 tonnes of copper from the Philippine operations.
OceanaGold is listed on the Toronto, Australian and New Zealand stock exchanges under the symbol OGC.
Cautionary Statement for Public Release
Certain information contained in this public release, including any information relating to the Company's future financial or operating performance may be deemed "forward-looking" within the meaning of applicable securities laws. Forward-looking statements and information relate to future performance and reflect the Company's expectations regarding the future growth, results of operations, business prospects and opportunities of OceanaGold Corporation and its related subsidiaries. Any statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions or future events or performance (often, but not always, using words or phrases such as "expects" or "does not expect", "is expected", "anticipates" or "does not anticipate", "plans", "estimates" or "intends", or stating that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved) are not statements of historical fact and may be forward-looking statements. Forward-looking statements such as production forecasts are subject to a variety of risks and uncertainties which could cause actual events, performance, achievements or results to differ materially from those expressed in the forward-looking statements. They include, among others, the accuracy of mineral reserve and resource estimates and related assumptions, inherent operating risks and those risk factors identified in the Company's most recent Annual Information Form prepared and filed with securities regulators which is available on SEDAR at www.sedar.com under the Company's name. There are no assurances the Company can fulfil forward-looking statements. Such forward-looking statements are only predictions based on current information available to management as of the date that such predictions are made; actual events or results may differ materially as a result of risks facing the Company, some of which are beyond the Company's control. Some of these risks and uncertainties include: general economic and market factors (including changes in global, national or regional financial credit, currency or securities markets); changes or developments in global, national or regional political conditions (including any act of terrorism or war); changes in laws (including tax laws) and changes in GAAP or regulatory accounting requirements; fluctuations in the price of gold; inability to obtain required consents, permits or approvals; and other risk factors as outlines in the Company's annual and interim filings. Readers are cautioned that the foregoing list of factors is not exhaustive. Although the Company believes that any forward-looking information contained in this press release is based on reasonable assumptions, readers cannot be assured that actual outcomes or results will be consistent with such statements. Accordingly, readers should not place undue reliance on forward-looking statements and information. The Company expressly disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, events or otherwise, except as required by applicable securities laws. All forward looking information contained in this public release is qualified by this Cautionary Statement. The information contained in this release is not investment or financial product advice.
SOURCE OceanaGold Corporation