Allied Gold gets

Business, Normal

The National,Monday 09th January 2012

ALLIED Gold Ltd, which owns the Gold Ridge mine in the Solomon Islands and Simberi Gold mine in Papua New Guinea, said last Thursday it has stuck a new three-year US$80 million gold loan with RK Mine3 Finance, a unit of UK-based red Kite.The company announced in a statement that it wished to use the loan to refinance existing debt.The notional repayment obligation over the three years is 66, 240oz with a reference price of US$1500 per ounce, Allied said.The loan was repayable in physical gold and the number of ounces to be provided was linked to the prevailing gold price.The minimum total repayable ounces over the three years is 56,304 oz and the maximum is 76,176 oz.The loan did not require hedging, as the gold sold will be at the prevailing spot price, the firm said.Allied, listed in Canada, Australia and London, said it was sticking to its 2012 production forecast of 180,000 oz.The company ultimately aimed to lift this beyond 200,000oz yearly."The ramp up to 200,000 oz/y remains on track and we are fully financed to deliver on this strategy," chief executive Frank Terranova said.The company also announced that it met its 2011 production guidance of 108,338oz, with the December quarter yielding 31, 181oz.