Teranga Gold bags $135m from Franco-Nevada, to complete gold...

Teranga Gold bags $135m from Franco-Nevada, to complete gold acquisition in Senegal.

http://www.proactiveinvestors.com.au/companies/news/51965/teranga-gold-bags-135m-from-franco-nevada-to-complete-gold-acquisition-in-senegal-51965.html



Teranga Gold Corporation (ASX: TGZ, TSX: TGZ) received US$135 million from Franco-Nevada Corporation (TSX: FNV, NYSE: FNV) under the stream transaction announced in December to complete the acquisition of Oromin Joint Venture Group from Bendon International.

The Oromin Joint Venture Group controls a 1.45 million ounce gold deposit near Teranga's Sabodala Gold operation in Senegal.

The funds have also allowed Teranga to retire US$30 million of its US$60 million debt facility with Macquarie Bank.

Concurrently, Teranga has acquired the Badr Investment & Finance Company under the terms previously announced for US$7.5 million.

Integration of operations with a larger reserve base and higher production provides Teanga with operating flexibility through sequencing of multiple deposits, cost reductions and maximisation of free cash flows.

Teranga expects to reveal its combined operations, including updated reserves with its year-end operating results at the end of January, and the technical report for combined operations during the first quarter.

Teranga's Sabodala Gold operation lies 650 kilometres east of the capital Dakar within the West African Birimian Gold belt, and about 90 kilometres from major gold mines and discoveries in Mali.

Teranga's land holding covers 1,488 square kilometres and is one of the largest land positions for exploration in south eastern Senegal.