US-based Alacer Gold has secured a senior secured project finance facility of $250m with BNP Paribas (Suisse), ING Bank and Societe Generale Corporate & Investment Banking to develop its Çöpler Sulfide Project.
Alacer Gold president and chief executive officer Rod Antal said: "The facility represents yet another step forward in de-risking the Sulfide Project and further strengthens Alacer’s balance sheet enabling increased flexibility to advance growth.
"We are extremely pleased to have closed the agreement on very competitive terms with this lending syndicate."
The company’s Çöpler Sulfide Project is expected to deliver medium-term growth and will add an additional 22 years of production.
The project secured approval for advancement in April and environmental approval in December last year.
Land use permits, which have progressed through the regulatory process, are awaiting final approval before construction can begin on the project.
According to the company, the Çöpler Sulfide Project is on track for commissioning at the end of 2017 and is expected to bring Çöpler life-of-mine gold production to 3.9 million ounces.
With a seven-year term, the new facility has interest rates of LIBOR plus 2.5% to 2.95%, no mandatory gold hedging requirements and no early repayment penalties.
Gold mining company Alacer has an 80% interest in Çöpler Gold Mine in Turkey operated by Anagold Madencilik Sanayi.