RE:intersting PP.... they want to cancel the streaming deal....
Business Objectives and Milestones
The main business objective of the Corporation in the coming years is to fund and develop the Ilovica-Shtuka
Project. The main near-term milestones in connection with this objective are described in the table below.
Milestone Target Calendar Date
Repay Royal Gold – As set out above, the Corporation intends to
repay the US$11.25 million of advance payments made by Royal Gold
and terminate the GPSA
Q1 2017
Milestone Target Calendar Date
Receive Exploitation Permit – Exploitation Permit request was
submitted to the Macedonian Ministry of Economy in July 2016 and is
the last material permit required to be received by the Corporation. It is
expected to be received following the Macedonian parliamentary
election in December 2016.
Q1 2017
Finalize project finance facility – The Corporation has executed a
mandate letter and term sheet with Socit Gnrale and UniCredit
Bank to provide up to US$215 million of senior secured project
finance and has executed a mandate letter and term sheet with
Caterpillar Financial to arrange an equipment financing facility for up
to US$25 million. All US$240 million of these project finance
facilities is eligible for German Government support under the UFK
German Untied Loan Guarantee Scheme. Assuming the termination of
the GPSA with Royal Gold, the Corporation expects to upsize the
project finance facility to incorporate the increased cash flows with the
stream removed, finalize the terms and sign a binding agreement to
secure the facility.
1H 2017
Finalize EPC/M Contract – The Corporation has launched a tender
process for the EPC/M Contract. A preferred provider is expected to be
identified by the end of 2016 and the EPC/M Contract is expected to
be finalized in March of 2017.
1H 2017
Begin early works and land acquisition – In order to progress the
development of the Ilovica-Shtuka Project, the Corporation will look to
begin early works and land acquisition in the first quarter of 2017 if the
proceeds of the Offering are sufficient.
1H 2017
Following completion of the foregoing milestones, the Corporation will be in a position to make a construction
decision and the quantum of remaining funding required should be clear, given that the Corporation will have
received a quote for the EPC/M Contract and the size of the project finance facility will be known. At such time, the
Corporation will determine how best to raise the balance of funds required.