Lydian International Ltd. on Dec. 28 said its Armenian operating subsidiary entered a secured credit facility for a maximum amount of US$42 million with Caterpillar Financial Services (UK).
The facility is available to be drawn in multiple advances through June 2018, subject to the satisfaction of certain conditions, and will be used to purchase mobile mining equipment for the company's Amulsar gold project in Armenia.
Each advance will be repayable over a 75-month term, inclusive of a six-month initial repayment grace period. The facility will bear an interest rate of LIBOR plus 4.5% and principal security consists of specific equipment financed by Caterpillar Financial. Lydian also provided an unsecured guarantee in favor of Caterpillar Financial.
Construction at Amulsar started in October, and Lydian expects first gold production from the project in the first quarter of 2018. About a month ago, the company also secured a US$24 million senior secured facility for the Amulsar project.