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Novagold Touts 'Healthy Treasury' For Pursuing Donlin Project

Kitco News

Novagold Resources Inc. (NYSE American, TSX: NG) says it is in an “excellent financial position” to advance its Donlin gold project in Alaska, with $166 million in cash on hand. The company secured the major permits needed for the project in August. Novagold provided an update in a summary of developments for the third quarter, including the sale of its 50% interest in Galore Creek to Newmont Mining Corp. for up to $275 million. Novagold already received $100 million in July and is scheduled to receive an additional $75 million no later than July 27, 2021 and another $25 million by July 27, 2023. If Newmont proceeds with construction, Novagold would receive an additional $75 million, officials say. “At the end of the third quarter, Novagold had a very healthy treasury of $166 million in cash and term deposits,” says Gregory A. Lang, president and chief executive officer. “With an additional $100 million we expect to receive from Newmont in the next five years, the company should not require any new funding before making a construction decision for Donlin Gold.”

By Allen Sykora of Kitco News; asykora@kitco.com

 

Torex Reports Record Quarterly Output, Targets Upper End Of Guidance

Wednesday October 3, 2018 08:25

Torex Gold Resources Inc. (TSX: TXG) reports record production in the third quarter of 101,400 gold ounces, with revenue of $126.3 million, from its ELG Mine Complex in Mexico. “The upper end of gold-production guidance is within reach and we all look forward to continuing the trend of accelerating performance,” says Fred Stanford, president and chief executive officer.

By Allen Sykora of Kitco News; asykora@kitco.com

 

B2Gold Repays Convertible Notes, Continues With Debt Reduction

Wednesday October 3, 2018 08:25

B2Gold Corp. (TSX: BTO, NYSE AMERICAN: BTG, NSX: B2G) says it has repaid the $259 million of convertible senior subordinated notes that were issued in 2013 and matured on Oct. 1. With accrued interest, the total amounted to some $263 million, which B2Gold funded using existing cash on hand and a portion of its $500 million revolving credit facility, the company says. After repayment, the company had an outstanding balance of $400 million under the credit facility plus a remaining undrawn capacity of $100 million. B2Gold says the repayment is part of a strategy to fund construction of the Fekola Mine in Mali without using equity financing. Since commercial production at Fekola in late 2017, the company has been reducing its outstanding debt throughout the course of 2018, B2Gold says. The company says it began 2018 with outstanding debt of approximately $700 million and expects to reduce it to $500 million by year-end, and then scale it back further in 2019.

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

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