Sulliden Gold arranges US$125 million project financing with Credit Suisse, Barclays

By Lisa Kerner

Charlotte, N.C., Nov. 8 - Sulliden Gold Corp. Ltd. said it entered into a mandate letter with Credit Suisse AG and Barclays Bank plc to arrange a limited recourse project finance facility of up to US$125 million for the construction and development of the gold and silver Shahuindo Project in Peru.

The facility would bear interest at Libor plus 4.85% pre-completion, and Libor plus 4.35% post-completion, according to a company news release.

While the facility can take a number of forms regarding risk management, Sulliden is considering a cashless collar of deep out of the money puts and calls to provide the maximum upside to the ounces within the facility, the release said.

The project finance facility will also include a gold price risk management facility.

Financial close is targeted for the first quarter of 2013.

Sulliden is a Toronto-based precious metals company focused on the exploration and development of its wholly owned gold and silver Shahuindo Project, located in Peru.

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