Allied Nevada Gold ANV ANV reports that on
December 27, 2013 it entered into the Second Amended and Restated Credit
Agreement (the "Credit Agreement") with The Bank of Nova Scotia
("Agent").
The Credit Agreement amends the prior revolving credit facility provided under,
the Amended and Restated Credit Agreement, entered into with the Agent and
other lenders dated as of October 31, 2012 (the "Prior Agreement"),
as follows:
/T/
-- The size of the revolving credit facility has been reduced from $120
million to $40 million;
-- The cash flow related covenants included in the Prior Agreement,
specifically the Leverage Ratio and the Interest Coverage Ratio, have
been eliminated;
-- The amount available to borrow under the Credit Agreement will be
determined by a Borrowing Base (primarily the value of inventory on the
leach pads) as defined in the Credit Agreement;
-- The Credit Agreement will have a maturity date of April 30, 2016;
-- The Credit Agreement includes covenants to maintain (i) a post-maturity
Reserve Tail, as defined in the Credit Agreement, of 600,000 recoverable
gold equivalent ounces and (ii) a Current Ratio, as defined in the
Credit Agreement, of not less than 1.25; and
-- The Credit Agreement includes an accordion feature allowing the Credit
Agreement to be increased to $75 million.
/T/
In connection with entering into the Credit Agreement, the Company also entered
into an Amendment Agreement and Credit Support Annex to the ISDA Master
Agreement ("ISDA Amendments") with Societe Generale and will enter
into one with National Bank Canada (the "Lenders") whereby the
Company will be required, beginning no later than January 10, 2014, to either
cash collateralize or post a letter of credit for any amount due to the Lenders
for the fair market value of the then current settlement cost of CDN $90
million of the cross currency swap which was entered into between the Lenders
and the Company in connection with the issuance of the Company's CDN $400
million 8.75% senior notes. Had the Company been required to either cash
collateralize or post a letter of credit with the Lenders as of December 27,
2013, the amount tendered would have been approximately $8.2 million. The
Company intends to utilize the Credit Agreement to post letters of credit with
the Lenders.
"We are pleased to have completed the revisions to the credit facility
which will provide us with greater liquidity going forward by removing certain
covenants that had become obstacles with the declining price of gold,"
commented Steve Jones, Executive Vice President and Chief Financial Officer.
"We will look to grow the Credit Agreement as provided by the accordion
feature in 2014. We appreciate the support of The Bank of Nova Scotia and we
look forward to 2014 as we focus on updating the pre-feasibility and
feasibility studies for the Hycroft mill expansion."
Cautionary Statement Regarding Forward Looking Information
This press release contains forward-looking statements within the meaning of
Section 27A of the U.S. Securities Act of 1933, as amended, Section 21E of the
U.S. Securities Exchange Act of 1934, as amended (and the equivalent under
Canadian securities laws) and the Private Securities Litigation Reform Act or
in releases made by the U.S. Securities and Exchange Commission (the
"SEC"), as all may be amended from time to time. All statements,
other than statements of historical fact, included herein or incorporated by
reference, that address activities, events or developments that we expect or
anticipate will or may occur in the future, are forward-looking statements. The
words "estimate", "plan", "anticipate",
"expect", "intend", "believe",
"project", "target", "budget", "may",
"can", "will", "would", "could",
"should", "seeks", or "scheduled to", or other
similar words, or negatives of these terms or other variations of these terms
or comparable language or any discussion of strategy or intentions identify
forward-looking statements. Such forward-looking statements include, without
limitation, anticipated timing for the completion of the prefeasibility and
feasibility studies; statements regarding delays in processing gold and silver;
the potential for confirming, upgrading and expanding gold and silver
mineralized material at Hycroft; reserve and resource estimates and the timing
of the release of updated estimates; estimates of gold and silver grades;
anticipated costs, anticipated sales, project economics, the realization of
expansion and construction activities and the timing thereof; production
estimates and other statements that are not historical facts.
Forward-looking statements address activities, events or developments that
Allied Nevada expects or anticipates will or may occur in the future, and are
based on current expectations and assumptions. Although Allied Nevada
management believes that its expectations are based on reasonable assumptions,
it can give no assurance that these expectations will prove correct. Important
factors that could cause actual results to differ materially from those in the
forward-looking statements include, among others, risks that Allied
Nevada's exploration and property advancement efforts will not be
successful; risks relating to fluctuations in the price of gold and silver; the
inherently hazardous nature of mining-related activities; uncertainties
concerning reserve and resource estimates; uncertainties relating to obtaining
approvals and permits from governmental regulatory authorities; and
availability and timing of capital for financing the Company's exploration
and development activities, including the uncertainty of being able to raise
capital on favorable terms or at all; as well as those factors discussed in
Allied Nevada's filings with the SEC including Allied Nevada's latest
Annual Report on Form 10-K and its other SEC filings (and Canadian filings)
including, without limitation, its latest Quarterly Report on Form 10-Q (which
may be secured from us, either directly or from our website at
www.alliednevada.com or at the SEC website www.sec.gov). The Company does not
intend to publicly update any forward-looking statements, whether as a result
of new information, future events, or otherwise, except as may be required
under applicable securities laws.
Market News and Data brought to you by Benzinga APIs© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Comments
Loading...
Benzinga simplifies the market for smarter investing
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
Join Now: Free!
Already a member?Sign in