Mangazeya Mining Ltd announces signing of gold loan agreement with VTB Bank (PJSC) to Fund Expansions in Russia
Tortola, British Virgin Islands (October 23, 2017) – Mangazeya Mining Ltd (NEX: MGZ.H) (“Mangazeya” or the “Company”) announces that it has signed gold loan agreement with VTB Bank (PJSC) to enter into senior secured term loan facility of up to 800 000 grams of fine weight (Eight Hundred Thousand grams of gold) to fund the Company’s production, development and exploration activities. The deal was approved by the Board of Directors of the Company on October 20, 2017.The funds are to be made available in three tranches – Tranche 1 size: max MUSD 22 or max 600 000.00 grams of gold, Tranche 2 size: max MUSD 8 or max 230 000.00 grams of gold, Tranche 3 size: max MUSD 5 or max 80 000.00 grams of gold.
The Creditor, the Bank – VTB Bank (PJSC)
The Borrower – Mangazeya Mining LLC (Russian subsidiary of Diascia Investments Limited)
The Metal – gold (A98), unallocated, bearing no identifying details (such as bar number, fineness and mark, name of manufacturer, etc.)
Subject Matter of the Agreement: The Bank shall transfer the Metal to the ownership of the Borrower under the terms and conditions as set forth in the Agreement, and the Borrower shall undertake to return the equal volume of Metal (and, in case of the Creditor’s exercising its contractual rights, the RUB equivalent of such volume of Metal), to pay interest on Loan and perform other contractual obligations.
The funds received from the sale of Metal, shall be used for the Borrower’s refinancing of its obligations in part of the credit funds used for financing of current costs of gold production in 2016 and 2017, financing of current operations, including creation of coverage on letter of credit, and granting loans to Russian Operation Companies, and financing of the Borrower’s activities as performed in its ordinary course of business in accordance with its Articles of Association, including working capital financing.
Final repayment: on the date falling One Thousand Ninety Five (1,095) calendar days after the date of the Agreement. The Loan repayment in metal shall be made by the Borrower in unallocated metal of the same kind as has been provided to the Borrower by the Bank.
The Borrower’s obligations will be secured under the Pledge of shares in the Russian legal entities owned by Mangazeya Mining Ltd and guarantees of Russian operation companies.
With the assistance of VTB Bank (PJSC) the Company has increased its financial strength required to meet its planned development growth targets.
About Mangazeya Mining Ltd.
Mangazeya Mining Ltd is a gold mining and exploration company with its assets based in eastern Russia. The common shares of Mangazeya Mining Ltd are listed and posted for trading on the Toronto Stock Exchange (NEX) with the “MGZ.H” ticker.
Mangazeya Mining Ltd.