Westgold Resources (ASX:WGX) has executed a commitment letter with ING Bank (Australia) and Société Générale to increase its existing $100 million syndicated facility agreement (SFA) to $300 million through the addition of a new facility.
Argonaut PCF acted as financial advisor to Westgold in relation to the facility.
The $200 million new facility is available until 30 June 2025 and will have a quarterly amortisation schedule with first repayment commencing September 2025 (if drawn). Westgold was not required to enter into mandatory gold hedging as part of the new facility.
Westgold says the new facility strengthens the company’s balance sheet by providing access to $300 million of undrawn facilities (including the undrawn $100 million revolving corporate facility) that may be utilised for general corporate purposes.
Westgold CEO Wayne Bramwell says increasing the undrawn facilities to bolsters the company’s balance sheet and enhances Westgold’s financial agility to execute on its growth strategy in FY25.
“The ongoing support from our existing facility providers, ING Bank and Société Générale is very pleasing. Remaining unhedged is a key driver of profitability and a strategic outcome for the business,” he says.
“Westgold is building a larger, more profitable and sustainable business across two of Australia’s most prolific gold regions. Today’s announcement reflects the shared confidence of the company and our lenders in our team’s vision and ability to capture and create increasing economic value from this portfolio of assets.”
Write to Adam Orlando at Mining.com.au
Images: Westgold
