Perseus Mining Limited (ASX/TSX: PRU) has drawn down US$85M under a Project Finance Facility for the completion of the company's Company's Central Ashanti Gold Project ("CAGP") in Ghana, Africa.

"The drawdown of the project debt facility by CAGL will be used to complete CAGP construction, provide working capital, and repay inter-company loans to Perseus," Perseus Managing Director, Mark Calderwood' said:
He noted that the additional funds will enable the company to continue financing its highly successful exploration programmes in West Africa as well as fund project establishment costs and acquire long lead items for
our second gold project at Tengrela in Côte d'Ivoire."

  • Perseus cash on hand is the equivalent of approximately AU$104M and total debt is US$85M.

The loan facility provided to Perseus subsidiary, Central Ashanti Gold Limited ("CAGL"), was acquired through Macquarie Bank Limited and Credit Suisse AG has been drawn down.

To date, approximately US$152 million of the estimated US$174 million capital cost of Perseus's Central Ashanti Gold Project in Ghana has been funded by equity capital raised by Perseus. The balance of construction costs will be financed using funds drawn under the debt facility.
As at 22 June 2011, Perseus had cash on hand of approximately AU$104 million and total debt of US$85 million.

Data from the company said it has 230,000 ounces of gold sold forward that is deliverable over a 36-month period starting in March 2012 at an average price of US$1,250 per ounce. The hedging was undertaken in 2010 as a prerequisite to arranging the finance facility and no additional hedging is required as a result of the US$85 million drawdown. The hedging represents about 25 percent of expected production from CAGP to the end of 2014."