Battle North Gold Signs Commitment Letter for a US$40 Million loan to fund development of Bateman Project

Battle North Gold Corporation has executed a binding commitment letter with Macquarie Bank Limited for a senior secured term loan facility of US$40 million to be used to fund the construction of the 100%-owned, shovel-ready Bateman Gold Project (the "Project")[1] in Red Lake, Ontario, Canada. The proceeds of the Credit Facility, together with cash currently on the Company's balance sheet, is expected to fully fund the Project to Commercial Production.

Macquarie has completed the necessary credit approval process to issue the Commitment Letter.  However, the Credit Facility remains subject to certain customary conditions precedent and to negotiation and execution of customary definitive documentation, including a credit agreement and related security documents, which the Company and Macquarie anticipate will be completed by end of the first quarter of 2021.

The Company's Board of Directors has granted preliminary approval for certain critical-path Initial Capital expenditures (including portal construction and ramp development from surface, ammonia treatment plant construction, tailings management facility upgrades, and camp upgrades) not to exceed C$13 million of the C$109 million Initial Capital cost of the Project1. Full development of the Project, including the balance of the Initial Capital cost of the Project, remains subject to further approval of the Company's Board of Directors following completion of the Credit Facility.

On or about December 24, 2020, the Company plans to fully repay its existing approximate C$15 million Loan Facility with Sprott Private Resource Lending (Collector), L.P. ("Sprott Loan Facility")

CEO Comment

Battle North President and Chief Executive Officer George Ogilvie, P.Eng., stated, "Today's announcement is a major milestone for the Company and for the community of Red Lake. The Credit Facility, along with our existing cash balance, are expected to provide us with all the funding we require to complete the construction of the Bateman Gold Project. We believe 2021 will be a transformational year for the Company as we look, subject to Board approval, to complete construction and realize first production from the Bateman Gold Mine1.  Along with our Red Lake Regional Exploration and String of Pearls drilling programs throughout 2021, it should make for an exciting year."

"The Company is pleased to welcome Macquarie, a recognized global project finance bank in the mining sector as one of its key stakeholders.  We would also like to thank our advisors, Cutfield Freeman & Co. (Financial Advisor) and Cassels Brock & Blackwell LLP (Legal Counsel), for their valuable input throughout this process."

 

Tags: Northern Ontario / Deals & Financial / Gold / All Articles