RE:RE:RE:RE:RE:RE:RE:Merrex CEO Interviewed on BNNI think the IMG cash will be part used to pay back debt, and part used for building mine at Boto/Diakha along with the use of their debt facility.
The JV with Rand or even B2 would be a fantastic move. I'd take B2 to be honest, the processing facilities at Fekola are going to be brand new, and the B2 management might be open to the idea, given their aggressive deal making.
IMG would have around $200 million cash and bullion after paying the entire debt, and a $500 million credit facility. The CAPEX for the mine might be around $350-$450 million. I think the decision on how to finance the mine would depend on the gold price. IMG has the following covenants on their debt:
Cash proceeds from the sale of Niobec must be used within one year of closing. This window can be extended an additional 6 months with firm capital commitments
made within this time period. A balance of less than $50M
can be kept.
Capital commitments can include planned CAPEX spending or capital used for M&A.
Should the above requirements not be met, IAMGOLD must buy back the outstanding balance in bonds at par.