Amsterdam, 23 January 2012 - Nord Gold N.V. (“Nordgold” or the “Company”) (LSE: NORD), an established pure-play emerging-markets gold producer, announces that it has successfully secured $280 million in Bridge Financing, coordinated byNatixis, Sberbank CIB and Societe Generale.
The proceeds have been used to finance the acquisition ofall the outstanding shares of High River Gold Mines Ltd.("High River", TSX: HRG, Canada) not already owned by Nordgold, as announced in December 2012.
This six month Bridge Financing facility provides Nordgold with the flexibility to make multiple drawdowns in order to match payments to minorities as they became due. As a result of the successful transaction, Nordgold has raised its stake in HRG from 75.06% to 97.9%. Consolidation of a 100% stake in HRG is planned for 1H2013.
This bridge financing marks Nordgold’s first loan involving Western European banks. Societe Generale is acting as Facility Agent under the Bridge Loan.
The Company plans to refinance the Bridge Loan using medium-term financing. Nordgold has mandated Natixis,Sberbank CIB and Societe Generale as Mandated Lead Arrangers and Bookrunners to refinance the Bridge Loan through a new gold Pre-Export Finance Facility.
This bridge financing from an international banking groupallowed us to successfully close the HRG deal. It has helped us to optimize Nordgold’s corporate structure and to reduce related administrative costs for the benefit of all our shareholders. Sergey ZinkovichNordgold CFO