Western Goldfields plans $105 million term loan

By Sara Rosenberg

New York, Nov. 30 - Western Goldfields Inc. has received a commitment for a new $105 million eight-year term loan, according to a company news release.

Investec Bank is the lead bank on the deal.

Proceeds from the term loan will be used for the development of the Mesquite Mine in California, with a target production date of April 2008, and to help purchase $60.9 million of fleet equipment expected to arrive in mid-2007.

The term loan will be priced at Libor plus 220 basis points pre-completion of the project and Libor plus 175 bps post-completion.

Closing is anticipated to occur in the first quarter of 2007.

Western Goldfields is a Toronto-based gold producer.

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