• London
  • Vancouver
  • Camana Bay

US$185mTransaction amount

Aurora Gold Project / Guyana Goldfields

Structure and arrangement of project financing for the construction of the Aurora Gold Project in Guyana, South America.

Background

Endeavour advised Guyana Goldfields on the US$185 million financing of the Aurora Gold Project in Guyana. The first ever greenfield gold project in Guyana.

Comprehensive role advising the project sponsor including:
  • Development of a financing plan, leading beauty parade among financing sources and development of contractual structure
  • Financial modelling, managing due-diligence consultants, term sheet and documentation negotiations
  • Supporting the company with the conditions precedent to achieve drawdown finance

Key Contacts

George Pyper

Managing Director


Paul Mainwaring

Associate Director


Challenges

  • Junior sponsor issues
  • Country risk perceptions
  • Co-ordination of a diverse financing group including multilateral financial institutions, commercial lenders and equipment suppliers
  • Education of government with respect to typical lender requirements
  • Feasibility study contemplated simultaneous production from open pit and underground operations

Solutions

  • Financing plan designed to address lender concerns as to sponsor size and creditworthiness (contingencies; part-EPC solution; cost overrun facilities; equity in first; delay underground mine plan to later in project life)
  • Significant portion of financing sourced from multilateral financial institutions providing “comfort” to commercial lending groups
  • Provision of consultant experts to hand-hold the lenders: technical, social environmental, legal, insurance, PRI

Case Studies

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