Centerra Gold Closes $500 Million Revolving Credit Facility
Centerra Gold Inc. (TSX: CG) says it has entered into a $500 million four-year senior secured revolving credit facility with a syndicate of eight financial institutions. The credit facility replaces the $315 million Centerra B.C. Holdings Inc. credit facilities, for the wholly-owned subsidiary through which Centerra holds the Mount Milligan Mine, which had an outstanding balance $190 million, and the non-revolving $125 million credit facility entered into in early January in connection with the acquisition of AuRico Metals Inc., the company says. The new credit facility is for general corporate purposes, including working capital, investments, acquisitions and capital expenditures. “While Centerra has a strong balance sheet and we generate significant operating cash flow, we feel it is important to have the added financial flexibility which a corporate revolving credit facility gives us,” says Scott Perry, president and chief executive officer. The company also reports that on Jan. 29, Centerra repaid the outstanding balance of $76 million under its $150 million corporate revolving credit facility with the European Bank for Reconstruction and Development.