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20 December 2024
ACG METALS LIMITED
("ACG" or the "Company")
ACG Completes USD 200 Million Bond
Placement
ACG Metals Limited today announces that its
subsidiary, ACG HoldCo 1 Limited, has completed the placement of
USD 200 million of new four-year, senior secured bonds with a
coupon rate of 14.75 percent at par. The bond placement launched on
19 December 2024 and met strong investor demand across European and
international markets.
Settlement is expected on or about 13 January 2025,
subject to customary conditions precedent, and an application will
be made for listing of the new bonds on the Nordic ABM. Net
proceeds from the new bond issue will be used towards fully
financing the Sulphide expansion project at the Company's operating
Gediktepe Mine in Türkiye, and for general corporate purposes. As
part of the offering, all outstanding balances on ACG's existing
gold prepay debt facility with Traxys Europe S.A. and Argentem
Creek Partners will be consolidated into the bonds, resulting in
one USD 200 million senior debt instrument in the Company's capital
structure. The new bonds are callable at ACG's option after two
years.
Following the bond issuance, ACG is now fully funded
to deliver the Sulphide expansion project at its operating
Gediktepe Mine, enabling the transition from primary gold and
silver production to copper and zinc concentrate production with
gold and silver by-product sales. It is anticipated that, once
completed, the Sulphide expansion project will produce 20-25
thousand tonnes copper equivalent at first quartile all-in
sustaining costs over an initial 11-year life, underpinning an
attractive after-tax IRR of more than 30% at current consensus
commodity prices.
Given ACG's strong cash flow generation from its
existing operations, and fixed price turnkey EPC contract for the
Sulphide expansion project, the Company is expected to maintain a
strong financial position and healthy cash balance throughout the
construction period.
Artem Volynets,
Chairman and CEO of ACG, said:
"We are extremely
proud to have concluded this fundraising only three months after
completing the acquisition of Gediktepe mine. We are pleased to
welcome a broad spread of high-quality bond investors to the ACG story. Securing
funding to advance the Sulphide project and the transition to
copper production is a key step in ACG's goal of becoming a leading
copper producer in the London market and demonstrates our ability
to access deep pools of capital. Once completed, our copper
production at Gediktepe will provide the bedrock for further
organic and inorganic growth for the Company.
With our
outstanding project team and fixed price $146m EPC contact with GAP
INSAAT, a leading Turkish contractor and subsidiary of our major
shareholder, Çalik Holdings, we are fully confident of delivering
the project on budget and on time. First production is expected in
early 2026. With very strong cash flow
generation and 73% operating margin at consensus pricing, we are
well positioned to create value for ACG shareholders whilst
maintaining a solid balance sheet."
ABG Sundal Collier ASA and Stifel Europe AG acted as
Joint Lead Managers and Bookrunners for the bond issue with
Clarksons Securities AS acting as Joint Bookrunner.
- ENDS -
The person responsible for the release of this
information on behalf of the Company is Artem Volynets, Chairman
& Chief Executive Officer.
For further information please contact:
Palatine
Communications Advisor
Conal Walsh / James Gilheany/ Kelsey Traynor/ Richard
Seed
acg@palatine-media.com
Inside
Information
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within the meaning of Article 7(1) of the EU Market Abuse
Regulation No. 596/2016 as it forms part of UK law by virtue of the
European Union (Withdrawal) Act 2018 ("EUWA").
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