Saracen signs up for $150m facility

Perth gold miner Saracen Mineral Holdings has locked in a financing facility of up to $150 million with a banking syndicate, replacing a previous loan deal that expired in September.

Saracen has signed a senior secured revolving loan to be shared equally between BNP Paribas, Citibank and Westpac.

The facility includes an initial $45 million loan, a $5 million bank guarantee and a gold hedging facility.

Saracen will also have the option to request a further $105 million under the loan, subject to the approval of the syndicate trio.

The facility replaces a previous one available to Saracen that expired at the end of September, which the company never drew down on.

Saracen said it didn’t have immediate plans to draw down on the new facility.

Managing director Raleigh Finlayson said the facility was a strong vote of confidence in the company from the banks.

“The support of this group of high-calibre banks reflects the strength of Saracen’s operations and ongoing cashflow,” he said.

“The funds from the facility combined with current cash on hand and internal cash generation will be available to fund future growth opportunities as they arise.”

Saracen shares were 1.1 per cent higher to $1.30 each at 11:45am.