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Teranga Gold Corporation T.TGZ

Teranga Gold Corp is a Canadian-based gold company with assets is production, development, and exploration situated on prospective gold belts across West Africa in Burkina Faso, Cote d'lvoire and Senegal.


TSX:TGZ - Post by User

Bullboard Posts
Comment by dr_airtimeon Apr 11, 2014 5:07am
280 Views
Post# 22438397

RE:RE:RE:Maybe Cormark walked down...

RE:RE:RE:Maybe Cormark walked down...This is how I see it. They had a $60M facility with Macquarie. They repaid $30M with the Franco Nevada funds as was communicated here:

https://www.terangagold.com/English/Investors/NewsReleases/NewsReleaseDetails/2014/Teranga-Completes-Stream-Transaction-Acquisition-of-Remaining-Interest-in-OJVG-and-Retires-US30-Million-of-Debt-Facility/default.aspx

So they have $30M remaining they can easily repay in 2014 (cash flow from operations before changes in working captial was $100M in 2013 - will roughly similar in 2014 with increased production offset by ounces delivered to FNV) and had restructure to repay in 2014 per note 23 from their 2013 financial statments I've summarized below. Cormark owns 30M shares from Mid January when Mineral Deposits bailed + more from old shareholdings so they are supporting stock and are raising 30M to retire the Macquarie facility immediately to save interest plus free up the restricted cash balance Macquarie was requiring them to hold. It is not a coincidence the raise is exactly for $30M. 

Here is Note 23. This has to be the explanation:

During the third quarter of 2013, the Company 
amended its existing $60.0 million loan facility 
agreement with Macquarie (“Loan Facility”). The 
amended agreement had extended the final 
repayment date of its existing loan facility agreement 
by one year to June 30, 2015. The Company was 
required to maintain a restricted cash balance of up to 
$20.0 million and $40.0 million of the loan facility was 
to have been repaid in five equal quarterly 
installments beginning on June 30, 2014. The final 
$20.0 million was scheduled to be repaid with the final 
installment on June 30, 2015. As at December 31, 
2013, the Company was not permitted to withdraw 
any portion of the $20.0 million restricted cash 
balance as the Project Life Ratio was less than the 
required 2.2:1. In addition, the Company was not in 
compliance with all of its financial covenants, as a 
result, the entire $60.0 million project facility was 
classified within current borrowings. 
Subsequent to year end on January 15, 2014, the 
Company amended the Loan Facility and retired half 
of the balance for $30.0 million. The remaining 
balance of $30.0 million is scheduled to be repaid in 
three quarterly instalments of $5.0 million beginning 
on March 31, 2014. The final $15.0 million will be 
repaid on December 31, 2014. The amended Loan 
Facility agreement reduces the restricted cash 
requirement by $5.0 million to $15.0 million and 
removes the Project Life Ratio financial covenant.
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