Victoria Gold enters into a US $ 200 million credit facility at

TORONTO, Dec. 18 2020 (GLOBE NEWSWIRE) – Victoria Gold Corp. (TSX-VGCX) (“Victoria” or the “Company”) is pleased to announce that it has entered into a credit agreement with a syndicate of banks, made up of Bank of Montreal, as co-tenor of books, co-principal arranger and administrative agent, of CIBC, as co-bookrunner and co-principal arranger, and of BNP Paribas, as co-principal arranger under a loan facility US $ 200 million guarantee (the “Loan facility“). The loan facility consists of a US $ 100 million term loan (the “Term facility“) and a US $ 100 million revolving facility (the”Revolving credit facility“).

All of the conditions precedent to drawdown of the loan facility have been met and the Company has drawn down the full amount of the term facility and approximately US $ 75 million from the revolving credit facility. Financing from the loan facility was used to repay the outstanding project finance facility, which included senior and subordinated debt used in the construction of the Eagle gold mine. The revolving credit facility is available for general business purposes, subject to customary terms and conditions.

Mr. John McConnell, President and CEO said: “We are delighted that we achieved our goal of refinancing the project finance facility ahead of schedule. The loan facility carries significantly lower interest rates, which is expected to reduce carry costs by around 50% in 2021. The loan facility also offers significantly improved flexibility, characterized by the ability to draw and repay the revolving credit facility as needed; and greater flexibility with respect to authorized distributions, including investments, share repurchases and dividends. Prior to repaying the project facilities, the Company had paid over US $ 54 million in principal and interest on the initial construction facilities of the project. Given current gold prices, the Company expects to generate sufficient free cash flow to continue to repay significant amounts of debt during calendar year 2021.

The loan facility is available through (i) US dollar LIBOR loans, with an interest rate ranging from 3.00% to 4.00% above LIBOR (currently one-month LIBOR is ‘approximately 0.15%), or (ii) US dollar base rate loans, with an interest rate ranging from 2.00% to 3.00% above the US base rate, each based on the company’s leverage ratio and other customary terms and conditions.

The Term Facility will be repaid in twelve equal quarterly installments starting at the end of the first quarter of 2021. Any unpaid amount on the Revolving Credit Facility will be repayable in fine on the maturity date, which is extendable at the discretion of the Company. . and lenders. Any unused portion of the revolving credit facility will be subject to a customary commitment fee. The loan facility matures in December 2023.

The equipment rental facility with Caterpillar Financial Services Limited (“Cat Financial”) remains in place. In conjunction with the Project Debt Refinancing described herein, and subject to acceptable documentation, the terms of the Cat Financial Equipment Lease Facility are to be amended in favor of Victoria, including a reduction of the interest rate.

The Company would like to thank Cassels Brock & Blackwell LLP (legal advisor) and Auramet International (financial advisor) for their practical and valuable assistance throughout this process.

The Banks were assisted by Fasken Martineau DuMoulin srl (legal advisor).

About Victoria
The 100% Victoria Gold-owned Dublin Gulch gold property (the “Property”) is located in central Yukon Territory, Canada, approximately 375 kilometers north of the capital Whitehorse and approximately 85 kilometers from the city of Mayo. The property is accessible by road year round and is located within the Yukon Energy power grid.

Victoria Gold’s Eagle Gold mine reached commercial production on July 1, 2020. The mine is expected to produce an average of 210,000 ounces of gold per year for more than 10 years, as reported in an NI 43-101 technical report for the mine. Eagle Gold entitled “Technical Report for the Eagle Gold Mine, Yukon Territory, Canada” and dated December 3, 2019.

The exploration potential of the large Dublin Gulch property is excellent and includes the priority targets Olive-Shamrock, Nugget-Raven and Lynx, among others.

Caution and forward-looking statements
This press release includes certain statements which may be considered “forward-looking statements”. All statements in this discussion, other than statements of historical fact, which relate to the intended use of the proceeds of the Term Facility and the Revolving Credit Facility, the terms and conditions of the Loan Facility, expectations regarding free cash flow and debt repayment, estimates of Mineral resources and mineral reserves, future exploration drilling, exploration activities, expected metal production, internal rate of return, estimated ore grades, start of estimates expected production and exploration and capital expenditures (including costs and other estimates on which these projections are based) and events or developments that the Company expects are forward-looking statements. Although the Company believes that the expectations expressed in these forward-looking statements are based on reasonable assumptions, these statements are not guarantees of future performance and actual results or developments may differ materially from those of forward-looking statements. Factors that could cause actual results to differ materially from those of forward-looking statements include breach of loan facility preconditions, metal prices, exploration successes, continued availability of capital and financing, and general economic, market or business conditions. Therefore, readers should not place undue reliance on forward-looking statements.

For more information, contact:
John mcconnell
President and CEO
Victoria Gold Corp
Phone. : 416-866-8800

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