Georgetown, Guyana, September 3, 2014—IFC,
a member of the World Bank Group, has completed a $185 million financing
package for the construction and development of Guyana Goldfield’s Aurora
gold mine, located 170 kilometers west of Georgetown. The project is expected
to become one of the largest contributors to Guyana’s tax base and generate
up to 900 jobs during peak construction. Since becoming a shareholder in
the company in 2006, IFC has helped Guyana Goldfields establish an integrated
environmental, health, safety, and social management system in line with
international best practices.
The financing package consists of a
$45 million loan from IFC’s account and a $33.6 million loan from IFC’s
Managed Co-Lending Portfolio Program, a new syndications platform that
offers institutional investors the ability to passively participate in
IFC’s future senior loan portfolio. In addition, IFC coordinated
$106.4 million in loans from Export Development Canada, Caterpillar Financial
Services Corporation, ING Capital LLC, and the Bank of Nova Scotia.
"IFC has been a strong partner
to Guyana Goldfields for the last eight years. Their financing and
global experience on environmental and social management have been invaluable
as our project has evolved. This financing package demonstrates their
strong commitment to the project’s sustainable development and to Guyana”,
said Scott A. Caldwell, President & CEO of Guyana Goldfields.
Through its early equity program, IFC
supports early stage exploration mining projects, such as the Aurora mine,
that have the potential to bring significant positive economic impacts
to local communities and the wider population in developing countries.
“Guyana Goldfields will be one of the
first project financings in Guyana, setting a precedent and positive example
for investors across sectors,” said Jean Philippe Prosper, IFC Vice President
for Latin America and the Caribbean and Sub-Saharan Africa. “We are excited
to demonstrate that with strong partners and the patience of long-term
investors we can help bring tangible benefits to the Guyanese people."
The Government of Guyana is actively
promoting the development of commercial mining projects, such as Aurora,
that follow international standards for safety and environmental and social
management. IFC is currently working with the company and its contractors
on a strategy to continue and enhance its sourcing of supplies and services
from local companies.
IFC, a member of the World Bank Group, is the largest global development
institution focused exclusively on the private sector. Working with private
enterprises in about 100 countries, we use our capital, expertise, and
influence to help eliminate extreme poverty and boost shared prosperity.
In FY14, we provided more than $22 billion in financing to improve lives
in developing countries and tackle the most urgent challenges of development.
For more information, visit www.ifc.org
About Guyana Goldfields Inc.:
Guyana Goldfields Inc. is a Canadian based company, focused on the exploration
and development of gold deposits in Guyana, South America. GGI is focused
on the construction and development of the Aurora Gold Project scheduled
for commercial production in mid-2015. The Aurora Gold Project has a total
gold resource of 6.54 million ounces in the measured and indicated categories
(62.83 million tonnes at 3.24 g/t Au) as well as an additional 1.82 million
ounces in the inferred category (16.93 million tonnes at 3.34 g/t Au).
For further details, please refer to the press release dated December
9, 2013 and the report entitled “NI 43-101 Technical Report, Updated Feasibility
Study – Aurora Gold Project” dated January 29, 2013 available on SEDAR
GGI also holds a significant portfolio of attractive exploration
properties and holds cash and cash equivalents of US$68M as of July 31,