Luna Gold Corp. announce that it has completed the two-tranche, senior secured, project debt facility (the “Facility”) in the amount of up to US$15 million with RMB Resources Inc, the offer of which was previously announced on October 15, 2009.
Tranche 1 is in the amount of US$7.5 million and is available for the completion of the Aurizona project. Tranche 2 is in the amount of a further US$7.5 million and is available for working capital purposes while the operation ramps up to full production capacity and steady earnings inflow. Both tranches of the Facility will bear interest at LIBOR plus 7.5% and are to be fully repaid by December 31, 2012.
On the development side, Luna is pleased to confirm that the 69kV line for the Aurizona project has been approved for construction by CEMAR, the state power utility.
Luna’s CEO, Jim Bahan, comments, “The completion of this Facility is timely given the current improvement in the US$ to Real exchange rate. Further to our release of January 12th, I am pleased also to confirm that the 69 kV line for the project has been approved for construction by CEMAR, the state power utility, and that the stand-by generators, which will be used to commission the process plant, have arrived at the port of Itaqui, Maranhao.”