Westgold Bolsters Balance Sheet Strength
In This Article:
Syndicated Facility With Existing Lenders Increased to $300M
PERTH, Western Australia, Oct. 28, 2024 /CNW/ - Westgold Resources Limited (ASX: WGX) (TSX: WGX) (OTCQX: WGXRF) – Westgold or the Company) is pleased to announce it has executed a commitment letter with ING Bank (Australia) Limited and Societe Generale to increase its existing $100M Syndicated Facility Agreement (SFA) to $300M through the addition of a new $200M facility (Facility B).
The new $200M facility strengthens the Company's balance sheet by providing access to $300M of undrawn facilities (including the undrawn $100M Revolving Corporate Facility) that may be utilised for general corporate purposes.
Facility B is available until 30 June 2025 and will have a quarterly amortisation schedule with first repayment commencing September 2025 (if drawn).
Importantly, Westgold was not required to enter into mandatory gold hedging as part of the new Facility.
Argonaut PCF acted as financial adviser to Westgold. Key terms for the new facility are attached as Appendix A.
Westgold Managing Director and CEO Wayne Bramwell commented:
"Increasing our undrawn facilities to $300M bolsters our balance sheet and enhances Westgold's financial agility to execute on our growth strategy in FY25.
The ongoing support from our existing Facility providers, ING Bank and Societe Generale is very pleasing. Remaining unhedged is a key driver of profitability and a strategic outcome for the business.
Westgold is building a larger, more profitable and sustainable business across two of Australia's most prolific gold regions. Today's announcement reflects the shared confidence of the Company and our lenders in our team's vision and ability to capture and create increasing economic value from this portfolio of assets."
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Appendix A – Syndicated Finance Agreement - Key Terms
|
Key Terms – Facility B $200M | |
| Purpose | General corporate purposes |
| Financial Advisors | Argonaut PCF |
| Lenders | ING Bank (Australia) Limited and Societe Generale (50% each) |
| Interest Rate | BBSY plus fixed margin |
| Maturity | December 2026 |
| Repayment | Quarterly amortisation payments from September 2025 to Maturity |
| Financial Covenants | Typical for a facility of this nature |
| Facility Undertakings | Typical for a facility of this nature |
| Events of Default | Typical for a facility of this nature |
| Facility Agent and Security Trustee | National Australia Bank Limited |
| Mandatory Hedging | None |
Forward Looking Statements
These materials prepared by Westgold Resources Limited include forward looking statements. Often, but not always, forward looking statements can generally be identified by the use of forward looking words such as "may", "will", "expect", "intend", "believe", "forecast", "predict", "plan", "estimate", "anticipate", "continue", and "guidance", or other similar words and may include, without limitation, statements regarding plans, strategies and objectives of management, anticipated production or construction commencement dates and expected costs or production outputs.