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Cassels Brock Represents Continental Gold in US$250 Million Secured Project Finance Facility

Published: 01/10/2017

Team: David Budd, Patience Omokhodion, Carla Potter, Jenna Clark, Jay Goldman, Cathy L. Mercer, Lindsay Clements, Christopher B. Norton

On January 10, 2017, Continental Gold Inc., through its whole-owned subsidiary, Continental Gold Limited (together, the “Company”) entered into a definitive credit agreement with a special purpose vehicle of RK Mine Finance Master Fund I Limited (“Red Kite”) with respect to a US$250 million non-revolving term credit facility (the “Facility”).  The Facility which carries an interest rate of LIBOR plus 8% and includes a 42 month principal and interest payment holiday. Concurrently with the closing of the Facility, Continental has issued Red Kite 3,000,000 share purchase warrants exercisable at US$3.67 per share.

The Facility will be used to fund the development, construction and working capital requirements of the Company’s Buriticá project in Antioquia, Colombia.

Cassels Brock was Canadian counsel to the Company with a team that included David Budd, Patience Omokhodion, Carla Potter and Jenna Clark (Financial Services), Jay Goldman, Cathy Mercer and Lindsay Clements (Securities) and Chris Norton (Tax).