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Slide #91. Teranga Gold Corporation — Balance of the OJVG that it does not already own with Franco-Nevada
Teranga Gold Corporation (TSE:TGZ.CA)
Balance of the OJVG that it does not already own with Franco-Nevada
Teranga Gold Corporation ("Teranga") (TSX:TGZ)(ASX:TGZ) and Franco-Nevada Corporation ("Franco-Nevada") (TSX:FNV)(NYSE:FNV) are pleased to announce that they have agreed to enter into a US$135 million stream transaction that has allowed Teranga to enter into definitive share purchase agreements with Bendon International Ltd. ("Bendon") and Badr Investment & Finance Company ("Badr") to acquire the balance of the OJVG that it does not already own and to retire US$30 million of its US$60 million debt facility with Macquarie Bank Limited ("Macquarie"). On completion of these transactions, the combination of Sabodala and the OJVG satellite deposits is expected to allow Teranga to reach its phase 1 growth objective of 250,000 to 350,000 ounces of gold production leveraging off of its existing mill and infrastructure. The combination also provides operating flexibility to sequence pits and phases of pit development to maximize free cash flows. Overall, with the proximity of the OJVG pits to the Sabodala mill and the Company's ability to optimize the ounces that are processed through the mill, the transaction is expected to provide for near, medium and long term growth in production and free cash flows.
Teranga Gold is a Canadian-based gold company engaged in the production and sale of gold, as well as related activities such as exploration and mine development.
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