(MENAFN- ProactiveInvestors)
() has rearranged its hedge program for gold produced from the Las Lagunas gold/silver operations in the Dominican Republic.
The company is also in discussions with potential strategic shareholders from China showing interest in subscribing for 150 million shares at a premium to the current share price.
A portion of the capital raised would be applied to further process plant upgrades which could improve recoveries from the metallurgically complex refractory tailings being reprocessed at Las Lagunas.
The company’s future focus will be on the application of its technical expertise to refractory ore bodies in the Americas and China.
Hedge details
The company now has 87000 gold ounces hedged at US$1200 per ounce for delivery at the rate of 9000 ounces per quarter commencing 31 March 2015.
The annual delivery of 36000 ounces represents 84% of forecast production over the next two years.
received US$6.5 million on closing out the previous hedge program which has been applied to reducing the project loan to US$22.7 million.
The project lender Macquarie Bank () has agreed to a reasonable schedule for this loan repayment which will involve monthly payments of US$1.0 million commencing 28 February 2015 increasing to US$1.1 million per month from 30 June 2015 until a final payment on 31 October 2016.
The company will pay an average interest rate of 4.92% pa plus LIBOR for the outstanding loan (previously 4.25% plus LIBOR).
Finance negotiations continue
PanTerra said that irrespective of the improved repayment terms and hedge deliveries the company is continuing negotiations to issue US$30 million of secured five year Notes through a US Investment Bank which is aiming at a January 2015 closing.
The proceeds of the Note issue will be applied primarily to early repayment of the Macquarie Bank loan.
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