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REGIS RESOURCES LIMITED — Capital/Financing Update 2023
Oct 24, 2023
65733_rns_2023-10-24_25608650-ca8e-4e2a-8671-15ea43e99401.pdf
Capital/Financing Update
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25 October 2023
ASX Announcement
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Loan facility maturity date extension to 30 June 2025
Regis Resources Ltd (ASX:RRL, “Regis” or the “Company”) is pleased to announce that it has signed an amendment deed with its lenders to extend the maturity date of its existing $300M syndicated loan facility from 31 May 2024 to 30 June 2025. The existing syndicate of banks has not changed (i.e. Macquarie, HSBC, NAB, Westpac) and no hedging is required.
The maturity date extension is consistent with the development and execution of a broader funding strategy for the Company’s McPhillamys Gold Project following the expected completion of a bankable feasibility study in the March quarter 2024. This is likely to include the existing syndicated loan being refinanced.
The terms and conditions of the amended syndicated loan facility are materially consistent with those previously, other than that the minimum cash and bullion balance requirement will increase from the current ≥$50M (previously cash only) to ≥$100M from 1 July 2024 through to 31 December 2024, and ≥$150M thereafter. This requirement is consistent with the growth of Regis since the original loan was drawn and the Company’s own internal liquidity and funding objectives.
Regis is expecting a modest cash build in FY24 (after all exploration, development, and corporate costs) based on the prevailing gold price. From FY25, operating cash flows are expected to accelerate significantly with completion of the Company’s existing hedge book and the reduction in waste movement at the Havana open pit (Tropicana). Completion of the existing hedge book will result in an increase of more than $170M[1] in pre-tax cash flows (on a like for like basis vs. FY24) as 100% of production will be exposed to spot gold prices.
For further information please contact:
Investor Relations Enquiries : Media Enquiries : Ben Goldbloom Shane Murphy Regis Resources Limited FTI Consulting T: +61 8 9442 2200 T: +61 420 945 291 E: [email protected] E: [email protected]
This announcement is authorised by Jim Beyer, Managing Director and CEO.
1 At gold price of A$3,100/oz
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