Capricorn secures $107m debt deal

Gold aspirant Capricorn Metals has locked in a $107 million debt package, while Subiaco-based TNG has appointed a German bank to lead a $US600 million ($850 million) debt raising.

Capricorn said it had signed an offer from Macquarie Bank for a $107 million debt facility for its Karlawinda gold project.

The package includes an $81 million senior project facility, a bank guarantee of $19 million, and a $7 million working capital facility.     

Capricorn said the pricing, terms and conditions of the package were competitive.

Non-executive chair Debra Bakker said the financing was a significant milestone for the company.

“The Macquarie Bank funding package reflects the quality of the project and the significant work undertaken by the Capricorn team over the last twelve months following completion of the feasibility study in October 2017 and optimisation study in June 2018,” she said.

“This outstanding result removes a significant impediment to the development of the project and we can now push ahead to become Australia’s newest gold producer.”

Shares in Capricorn finished ahead 18.3 per cent at 7.1 cents each today.

Meanwhile, TNG has appointed KfW IPEX-Bank as its debt adviser to fund its Mount Peake vanadium project in the Northern Territory.

Under the mandate letter executed between the parties, KfW IPEX-Bank will structure, coordinate, lead, arrange and manage a syndicate to raise a targeted amount of $US600 million to underpin the project financing package.

Managing director Paul Burton said TNG was delighted to have secured a high-quality bank partner.

“We are extremely pleased to have achieved this outcome with KfW IPEX-Bank, which follows extensive reviews and meetings in Europe, Singapore and at the company’s head office over the past 12 months,” he said.

“KfW IPEX-Bank is one of the leading export and project financing banks worldwide, with a proven track record for complex project financings spanning many decades and in-depth expertise to access and optimize ECA cover and the respective funding.

“We now look forward to working closely with KfW IPEX-Bank to progress the full financing package for the Mount Peake Project expeditiously, with a view to achieving financial close as soon as possible and getting on with the job of constructing this major new Australian resource project.”

TNG shares were up 6.4 per cent at 10 cents each at the close.