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Karora Resources Bolsters Balance Sheet with Lower Cost $80 Million Credit Agreement with Macquarie Bank Limited

Press Release

TORONTO, June 9, 2022 – Karora Resources Inc. (TSX: KRR) (OTCQX: KRRGF) (“Karora” or the “Corporation”) is pleased to announce it has agreed to refinance its current credit facility with a lower-cost senior secured $80 million Credit Agreement with Macquarie Bank Limited (“Macquarie”). The Credit Agreement provides for a $40 Million term loan and a $40 million revolving credit facility, both bearing an interest rate of Canadian Dealer Offered Rate +4.5% per annum on the drawn principal and standby fee of 1.5% per annum on the undrawn revolving credit facility. The term of the Credit Agreement is 24 months with an option for annual renewal thereafter. The proceeds of Credit Agreement will be used to refinance the Corporation’s existing $30 million credit facility which bears an interest rate of TD prime rate plus 6.05% per annum, and for general working capital purposes. Closing of the Credit Agreement is subject to conditions precedent, including payment of customary upfront fees that are typical for a financing of this nature. Karora expects closing to occur during June 2022.

Paul Andre Huet, Chairman & CEO, commented: “I am very pleased we have partnered with Macquarie on an $80 Million Credit Agreement which bears a significantly lower interest than our current credit facility. We intend to refinance our outstanding $30 million credit facility while keeping the remainder as dry powder moving forward. The addition of a $40 million revolving credit facility will provide the Corporation with significant additional financial flexibility as we continue to execute on our organic strategy towards a targeted annual gold production range of between 185,000 and 205,000 ounces by 2024. Reaching this agreement with an Australian global financial services group the calibre of Macquarie demonstrates the market’s confidence in our growth potential and the maturity of our business.”

About Karora Resources

Karora is focused on increasing gold production to a targeted range of 185,000-205,000 ounces by 2024 at its integrated Beta Hunt Gold Mine and Higginsville Gold Operations (“HGO”) in Western Australia. The Higginsville treatment facility is a low-cost 1.6 Mtpa processing plant, which is fed at capacity from Karora’s underground Beta Hunt mine and Higginsville mines. Karora recently announced the proposed acquisition of the Lakewood Mill in Western Australia which will initially add 1.0 Mtpa capacity.  At Beta Hunt, a robust gold Mineral Resource and Reserve are hosted in multiple gold shears, with gold intersections along a 4 km strike length remaining open in multiple directions. HGO has a substantial Mineral gold Resource and Reserve and prospective land package totaling approximately 1,900 square kilometers. The Company also owns the high grade Spargos Reward project, which came into production in 2021. Karora has a strong Board and management team focused on delivering shareholder value and responsible mining, as demonstrated by Karora’s commitment to reducing emissions across its operations. Karora’s common shares trade on the TSX under the symbol KRR and also trade on the OTCQX market under the symbol KRRGF.

For further information: Rob Buchanan, Director, Investor Relations, T: (416) 363-0649

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