- Dacian Gold (DCN) is revealing the details of a new $16 million debt facility it signed with existing lender ANZ (ANZ)
- The company announced the refinancing on Tuesday, stating the new loan would replace its existing syndicated project finance debt
- DCN says the terms of the ANZ facility are similar to the old loan, but the payment schedule is extended until late 2022
- The mining stock also plans to establish a new gold hedging position of roughly 30 per cent of forecast production
- Dacian shares closed Tuesday’s session down 2.44 per cent at 20 cents each
Dacian Gold (DCN) is revealing the details of a new $16 million debt facility it signed with existing lender ANZ (ANZ).
The gold producer announced the refinancing on Tuesday, stating the new loan would replace its existing syndicated project finance debt.
ANZ is one of the three banks which is part of the old debt facility, with remaining finance-related hedging to be novated to ANZ.
Dacian said the terms of the new facility were similar to the old loan, but the payment schedule had been extended until December, 2022.
Under the new payment plan, the biggest repayment is due at the end of June 2022, lining up with its Mt Morgan mine plan and cash flow profile.
Along with the refinancing announcement, Dacian has also flagged plans to establish a new gold hedging position.
The gold producer wants approximately 30 per cent of forecast production from its Laverton operations to be hedged over 2022.
It argues the position will help provide an “appropriate level of protection” for the business as it grows its gold operation.
DCN’s hedge commitments at the end of September were a total 13,410 ounces at an average price of $2,236 per ounce, deliverable by the end of 2021.
Dacian shares closed Tuesday’s session down 2.44 per cent at 20 cents each.