Leagold Mining Updates Financing Plan With US$150M 5-year Term Loan, US$50M Equity Private Placement, and C$175 Million Subscription Receipt Offering Financing


VANCOUVER, Feb. 27, 2017 /CNW/ – Leagold Mining Corporation (TSX-V: LMC) (“Leagold” or the “Company”) is pleased to announce that it has executed a non-binding term sheet dated February 23, 2017 (the “Term Sheet”) with Orion Resources Partners, pursuant to which a fund managed by Orion Resources Partners (“Orion”) proposes to provide to the Company US$200 million in cash through a senior secured loan facility in the principal amount of US$150 million (the “Loan Facility”), and an equity private placement of US$50 million (the “Equity Subscription”).

Leagold’s previously announced financing plan to fund the acquisition of the Los Filos Mine contemplated up to US$200 million of debt financing, but the strong interest in the equity component of the financing plan has facilitated an adjustment to the debt-equity mix.  The new anticipated financing plan includes a US$150 million five-year term loan, US$50 million equity private placement, and the previously announced subscription receipt offering (the “Subscription Receipt Offering”), which is now expected to raise gross proceeds of C$175 million (approximately US$133 million).

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