Trans-Siberian Gold PLC $15 million Debt Re-Financing with VTB Bank (5344I)

TIDMTSG

RNS Number : 5344I

Trans-Siberian Gold PLC

20 June 2017

Trans-Siberian Gold plc

("TSG" or the "Company")

$15 million Debt Re-Financing with VTB Bank

Trans-Siberian Gold plc (TSG.L) is pleased to announce that the Company's wholly owned subsidiary ZAO Trevozhnoye Zarevo ("TZ") has materially improved the terms of its debt facilities having agreed terms with VTB Bank.

The new facility will be used to facilitate the repayment of TZ's existing two loan facilities, currently amounting to $14.8 million, and provide additional funds for working capital and other corporate purposes.

Highlights & Key Terms:

   --      $15 million debt facility 
   --      5-year term 
   --      6.2% interest rate per annum 
   --      18 month capital repayment deferral 
   --      No royalty or hedging required 
   --      Reduces cost of debt and maintains flexibility for growth and development 

Dmitry Khilov, CEO of TSG, commented:

"We are very pleased to have materially improved the terms of our debt facilities. I am grateful for the hard work of our finance team who have successfully negotiated improved terms which reduces our cost of borrowing. We maintain a low level of gearing and look forward to working with VTB Bank"

Further Information

TZ has entered into an agreement under which VTB Bank will provide a $15m facility for a 5 year term, repayable in equal amounts quarterly with the first repayment effective seven calendar quarters after initial drawdown.

The agreement contains customary representations and warranties from TZ to VTB Bank. There are certain financial obligations in the event of early repayment or breaches of covenants. In the event of default, the interest rate rises to 13.5% per annum. The debt facility is secured against the equity and fixed assets of TZ only. TZ is required to enter into an exclusive gold sales agreement with VTB Bank.

Ends

 
  Contacts: TSG 
                                     +44 (0) 7770 
 Simon Olsen                               484965 
                                     +44 (0) 7799 
 Stewart Dickson                           694195 
 
                                      +44 (0) 207 
 Cantor Fitzgerald Europe                894 7000 
 David Porter David Foreman Craig 
  Francis 
 

The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014 ('MAR'). Upon the publication of this announcement via Regulatory Information Service ('RIS'), this inside information is now considered to be in the public domain.

This information is provided by RNS

The company news service from the London Stock Exchange

END

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June 20, 2017 02:00 ET (06:00 GMT)