LONDON (Yosefardi) – Archipelago Resources Plc, a company controlled by Indonesian tycoon Peter Sondakh, has entered into a new corporate financing facility of US$160 million with some banks.
The banks are Standard Chartered Bank and Bank Permata, a JV between Standard Chartered and Astra International.
Under the facility agreement, Archipelago, which produces around 140,000 ounces of gold per annum in North Sulawesi, can make initial drawdowns of up to US$100 million.
The funds will be utilized to refinancing existing indebtedness of US$43.5 million owed to Permata and Standard Chartered Bank and general corporate purposes.
“In support of the facility, Archipelago subsidiaries will also enter into a five-year exclusive off-take arrangement with Standard Chartered,” Archipelago said yesterday.