Centerra Gold (TSE:CG) Closes on $150 Million Revolving Credit Facility with EBRD

Centerra Gold Inc. (TSE:CG) said they closed on a three-year revolving credit facility with with the European Bank for Reconstruction and Development, or EBRD, which is the only lender in the deal.

Any use of the Facility will incur an interest rate of LIBOR plus 2.9 percent for the loan.

According to Centerra, the Facility will be used for "investments and acquisitions and capital expenditures to finance the development of the Company’s existing properties in the Kyrgyz Republic and Mongolia, and for future investments and acquisitions in other EBRD countries of operation."

"We are very pleased to enter into this facility with EBRD. 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. Our relationship with EBRD goes back some 15 years and we are delighted to continue to work with them to help finance development in the regions we operate including further investment in the Kumtor mine together with its underground development," said President and CEO of Centerra, Stephen A. Lang.

Centerra also announced on Monday that they completed $2.5 million in expenditures on the Kara Beldyr property.

After capex, Centerra is now a 50 percent owner in the project, which is located in Tyva Republic, Russia. Their partner in the joint venture is Central Asia Gold AB, Sweden.

Findings from the exploration were positive, and have resulted in the decision by Centerra to increase their stake in the venture to 70 percent, which will require an additional expenditure of $4 million over the next two years.