Brazilian Gold Projects Tap Loan Market

Luna Gold, developers of the Aurizona gold mine in Northern Brazil, has closed a $30m project financing. The package features a $20m 5-year USD term loan with a 1-year grace period paying Libor+3.625%, and a $10m-equivalent 3-year BRL-denominated revolver paying the DI+3.25%. The miner plans to use the facility to repay $10m in debt with specialist boutique RMB Resources and to fund working capital. WestLB was sole lender. Separately, Australia’s Beadell Resources is planning to raise $80m in the loan market to help develop the Tucano gold mine in Brazil. The facility would include a 115,000-135,000 ounce gold hedge, and the issuer says it plans to involve government-backed Banco da Amazonia to provide access to lower cost funding. The exact details of the financing were not disclosed, and Australia-based Beadell was unable to be reached Wednesday afternoon. Macquarie and WestLB are joint lead arrangers.