|By Marketwired .||
|January 16, 2014 06:00 AM EST||
TORONTO, ONTARIO -- (Marketwired) -- 01/16/14 -- Teranga Gold Corporation ("Teranga") (TSX: TGZ)(ASX: TGZ) today announced the completion of funding of US$135 million by Franco-Nevada Corporation ("Franco-Nevada") under the stream transaction announced on December 12, 2013. With the US$135 million received from Franco-Nevada, Teranga has completed the previously announced acquisition of the balance of the Oromin Joint Venture Group Ltd. ("OJVG") that it did not already own from Bendon International Ltd. and has retired US$30 million of its US$60 million debt facility with Macquarie Bank Limited. Concurrently, Teranga has acquired the Badr Investment & Finance Company under the terms previously announced for US$7.5 million.
"We are pleased to have completed this long-awaited transaction while achieving minimal dilution to our shareholders and providing greater strength to our balance sheet by reducing our debt facility by half. We look forward to the integration of operations with a larger reserve base and higher production. The combination provides us with significant operating flexibility through sequencing of multiple deposits, to allow for greater maximization of free cash flows. We are now well positioned and expect to see real value creation for our shareholders in the years ahead," said Richard Young, President and Chief Executive Officer, Teranga Gold.
The Company expects to announce the highlights of its anticipated combined operations integrating the OJVG, including updated reserves with its year end operating results announced with its ASX Report at the end of January and expects to file the technical report for the combined operations before the end of the first quarter of 2014.
This news release contains certain statements that constitute forward-looking information and forward-looking statements within the meaning of applicable securities laws (collectively, "forward-looking statements"). Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of Teranga, or developments in Teranga's business or in the gold industry, to differ materially from the anticipated results, performance, achievements or developments expressed or implied by such forward-looking statements. Forward-looking statements include all disclosure regarding possible events, conditions or results of operations that is based on assumptions about, among other things, future economic conditions and courses of action. The words "poised", "gives", "expect", "its vision", "plan", "support", "assist", "commit to", "will not", "intend", "intends to" and similar expressions identify forward looking statements. Forward-looking statements may also include, without limitation, any statement relating to future events, conditions or circumstances. Teranga cautions you not to place undue reliance upon any such forward-looking statements, which speak only as of the date they are made. The risks and uncertainties that may affect forward-looking statements include, among others: economic market conditions, anticipated costs and expenditures, government approvals, and other risks detailed from time to time in Teranga's filings with Canadian provincial securities regulators. Forward-looking statements included herein are based on Teranga management's current plans, estimates, projections, beliefs and opinions, and, except as required by law, Teranga does not undertake any obligation to update forward-looking statements should assumptions related to these plans, estimates, projections, beliefs and opinions change. Nothing in this news
release should be construed as either an offer to sell or a solicitation to buy or sell Teranga securities.
Teranga is a Canadian-based gold company listed on the Toronto Stock Exchange (TSX: TGZ) and Australian Securities Exchange (ASX: TGZ). Teranga is principally engaged in the production and sale of gold, as well as related activities such as exploration and mine development.
Teranga's mission is to create value for all of its stakeholders through responsible mining. Its vision is to explore, discover and develop gold mines in West Africa, in accordance with the highest international standards, and to be a catalyst for sustainable economic, environmental and community development. All of its actions from exploration, through development, operations and closure will be based on the best available techniques.