Archipelago Resources Inks $160 Million Corporate Financing Deal

LONDON--Archipelago Resources PLC (AR.LN), an Indonesia-focused gold miner, Tuesday said it has signed a new corporate financing facility to provide up to $160 million in funding, which will be used to refinance existing debt and for general corporate purposes.

MAIN FACTS:

-Archipelago subsidiaries have entered into a new corporate financing agreement with Standard Chartered PLC (STAN.LN) and PT Bank Permata TBK.

-Under the Facility Agreement, Archipelago can make initial drawdowns totaling up to $100 million.

-Thereafter and subject to obtaining necessary approvals, Archipelago can also exercise an option to drawdown a further $60 million.

-Under the Facility Agreement, Archipelago will make an initial drawdown to refinance existing indebtedness of $43.5 million owed to Permata and Standard Bank.

-Funds can also be drawn for general corporate purposes should Archipelago wish to make further borrowings in the future.

-This funding will provide Archipelago with greater financing flexibility to support growth initiatives and strategies as these evolve (either organic or corporate in nature).

-The funding supports Archipelago's already strong balance sheet (with reported cash and cash equivalents of $51 million and gearing of 5% as of Dec. 31, 2012).

-Shares at 0817 GMT flat at 52.0 pence.

-Write to Iain Packham at [e-mail]

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