TORONTO, June 9, 2022
/CNW/ - Karora Resources Inc. (TSX: KRR) (OTCQX: KRRGF) ("Karora"
or the "Corporation") is pleased to announce it has agreed to
refinance its current credit facility with a lower-cost senior
secured $80 million Credit Agreement
with Macquarie Bank Limited ("Macquarie"). The Credit Agreement
provides for a $40 Million term loan
and a $40 million revolving credit
facility, both bearing an interest rate of Canadian Dealer Offered
Rate +4.5% per annum on the drawn principal and standby fee of 1.5%
per annum on the undrawn revolving credit facility. The term of the
Credit Agreement is 24 months with an option for annual renewal
thereafter. The proceeds of Credit Agreement will be used to
refinance the Corporation's existing $30
million credit facility which bears an interest rate of TD
prime rate plus 6.05% per annum, and for general working capital
purposes. Closing of the Credit Agreement is subject to conditions
precedent, including payment of customary upfront fees that are
typical for a financing of this nature. Karora expects closing to
occur during June 2022.
Paul Andre Huet, Chairman &
CEO, commented: "I am very pleased we have partnered with Macquarie
on an $80 Million Credit Agreement
which bears a significantly lower interest than our current credit
facility. We intend to refinance our outstanding $30 million credit facility while keeping the
remainder as dry powder moving forward. The addition of a
$40 million revolving credit facility
will provide the Corporation with significant additional financial
flexibility as we continue to execute on our organic strategy
towards a targeted annual gold production range of between 185,000
and 205,000 ounces by 2024. Reaching this agreement with an
Australian global financial services group the calibre of Macquarie
demonstrates the market's confidence in our growth potential and
the maturity of our business."
About Karora Resources
Karora is focused on increasing gold production to a targeted
range of 185,000-205,000 ounces by 2024 at its integrated Beta Hunt
Gold Mine and Higginsville Gold Operations ("HGO") in Western Australia. The Higginsville treatment
facility is a low-cost 1.6 Mtpa processing plant, which is fed at
capacity from Karora's underground Beta Hunt mine and Higginsville
mines. Karora recently announced the proposed acquisition of the
Lakewood Mill in Western Australia
which will initially add 1.0 Mtpa capacity. At Beta Hunt, a
robust gold Mineral Resource and Reserve are hosted in multiple
gold shears, with gold intersections along a 4 km strike length
remaining open in multiple directions. HGO has a substantial
Mineral gold Resource and Reserve and prospective land package
totaling approximately 1,900 square kilometers. The Company also
owns the high grade Spargos Reward project, which came into
production in 2021. Karora has a strong Board and management team
focused on delivering shareholder value and responsible mining, as
demonstrated by Karora's commitment to reducing emissions across
its operations. Karora's common shares trade on the TSX under the
symbol KRR and also trade on the OTCQX market under the symbol
KRRGF.
Cautionary Statement Concerning
Forward-Looking Statements
This news release contains "forward-looking information"
including without limitation statements relating to production
guidance and the potential of the Beta Hunt Mine, Higginsville Gold
Operation, the Aquarius Project and the Spargos Gold Project, the
commencement of mining at the Spargos Gold Project and the
completion of the resource estimate.
Forward-looking statements involve known and unknown risks,
uncertainties and other factors which may cause the actual results,
performance or achievements of Karora to be materially different
from any future results, performance or achievements expressed or
implied by the forward-looking statements. Factors that could
affect the outcome include, among others: future prices and the
supply of metals; the results of drilling; inability to raise the
money necessary to incur the expenditures required to retain and
advance the properties; environmental liabilities (known and
unknown); general business, economic, competitive, political and
social uncertainties; results of exploration programs; accidents,
labour disputes and other risks of the mining industry; political
instability, terrorism, insurrection or war; or delays in obtaining
governmental approvals, projected cash operating costs, failure to
obtain regulatory or shareholder approvals. For a more detailed
discussion of such risks and other factors that could cause actual
results to differ materially from those expressed or implied by
such forward-looking statements, refer to Karora 's filings with
Canadian securities regulators, including the most recent Annual
Information Form, available on SEDAR at www.sedar.com.
Although Karora has attempted to identify important factors
that could cause actual actions, events or results to differ
materially from those described in forward-looking statements,
there may be other factors that cause actions, events or results to
differ from those anticipated, estimated or intended.
Forward-looking statements contained herein are made as of the date
of this news release and Karora disclaims any obligation to update
any forward-looking statements, whether as a result of new
information, future events or results or otherwise, except as
required by applicable securities laws.
www.karoraresources.com
SOURCE Karora Resources Inc.