Boston, MA 08/20/2014 (wallstreetpr) – Gold exploration company Banro Corporation (USA) (NYSEMKT:BAA) disclosed that it had established a comprehensive financing plan to steady its financial conditions apart from securing funds needed to achieve full production capacity in its Namoya mine. The company also announced senior management changes.
Financing Plan
The company stated that it could close financing of $35.5 million as backstop facility with Gramercy Funds Management LLC, which manages investment funds. The net proceeds from this financing would be used for repaying some bank loans totaling $12.8 million in the Democratic Republic of the Congo, and also pay the forthcoming interest payment due on its outstanding notes issued in March 2012. The remaining amount would be used for general corporate working capital purposes and to buy agglomeration plant in Namoya as short-term capital program.
Banro stated that the notes issued under the financing plan would mature at the end of July 2016. However, Banro Corporation (USA) (NYSEMKT:BAA) said that it could also prepay any time before the maturity period either in full or in part without any penalty.
Gold Sale
It had also struck a memorandum of understanding for the sale of gold forward for $41 million and gold streaming deal for $80 million. Banro Corporation (USA) (NYSEMKT:BAA) expects both the transactions to close in October current year.
Banro stated that it had established this financial planning in consultation with Mining Research Group Inc. and CIBC World Markets Inc., its financial advisors after reviewing different alternatives.
Management Changes
Banro Corporation (USA) (NYSEMKT:BAA) had also announced changes in its senior management. Accordingly, Kevin Jennings would join the company as Senior Vice President and Chief Financial Officer from September. He has more than twenty years of experience in corporate finance and development.
As a result, the current CFO Donat Madilo has been named as Vice President, Commercial and DRC affairs. He has been with the company for more than 17 years including CFO position from 2007 and played a significant role in the development of the company.
Banro disclosed that Banro Corporation (USA) (NYSEMKT:BAA) was also planning additional changes to complement the senior management team.
