REG - ACG Metals Ltd. - ACG Completes USD 200 Million Bond Placement

ACG MetalsAnnouncement

20/12/2024 16:15

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RNS Number : 9992Q  ACG Metals Limited  20 December 2024

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TO DO SO

 

20 December 2024

 

ACG METALS LIMITED

 

("ACG" or the "Company")

 

ACG Completes USD 200 Million Bond Placement

 

ACG Metals Limited today announces that its subsidiary, ACG HoldCo 1 Limited,
has completed the placement of USD 200 million of new four-year, senior
secured bonds with a coupon rate of 14.75 percent at par. The bond placement
launched on 19 December 2024 and met strong investor demand across European
and international markets.

 

Settlement is expected on or about 13 January 2025, subject to customary
conditions precedent, and an application will be made for listing of the new
bonds on the Nordic ABM. Net proceeds from the new bond issue will be used
towards fully financing the Sulphide expansion project at the Company's
operating Gediktepe Mine in Türkiye, and for general corporate purposes. As
part of the offering, all outstanding balances on ACG's existing gold prepay
debt facility with Traxys Europe S.A. and Argentem Creek Partners will be
consolidated into the bonds, resulting in one USD 200 million senior debt
instrument in the Company's capital structure. The new bonds are callable at
ACG's option after two years.

 

Following the bond issuance, ACG is now fully funded to deliver the Sulphide
expansion project at its operating Gediktepe Mine, enabling the transition
from primary gold and silver production to copper and zinc concentrate
production with gold and silver by-product sales. It is anticipated that, once
completed, the Sulphide expansion project will produce 20-25 thousand tonnes
copper equivalent at first quartile all-in sustaining costs over an initial
11-year life, underpinning an attractive after-tax IRR of more than 30% at
current consensus commodity prices.

 

Given ACG's strong cash flow generation from its existing operations, and
fixed price turnkey EPC contract for the Sulphide expansion project, the
Company is expected to maintain a strong financial position and healthy cash
balance throughout the construction period.

 

Artem Volynets, Chairman and CEO of ACG, said:

 

"We are extremely proud to have concluded this fundraising only three months
after completing the acquisition of Gediktepe mine. We are pleased to welcome
a broad spread of high-quality bond investors to the ACG story. Securing
funding to advance the Sulphide project and the transition to copper
production is a key step in ACG's goal of becoming a leading copper producer
in the London market and demonstrates our ability to access deep pools of
capital. Once completed, our copper production at Gediktepe will provide the
bedrock for further organic and inorganic growth for the Company.

 

With our outstanding project team and fixed price $146m EPC contact with GAP
INSAAT, a leading Turkish contractor and subsidiary of our major shareholder,
Çalik Holdings, we are fully confident of delivering the project on budget
and on time. First production is expected in early 2026.  With very strong
cash flow generation and 73% operating margin at consensus pricing, we are
well positioned to create value for ACG shareholders whilst maintaining a
solid balance sheet."

 

ABG Sundal Collier ASA and Stifel Europe AG acted as Joint Lead Managers and
Bookrunners for the bond issue with Clarksons Securities AS acting as Joint
Bookrunner.

 

- ENDS -

 

The person responsible for the release of this information on behalf of the
Company is Artem Volynets, Chairman & Chief Executive Officer.

 

For further information please contact:

Palatine

Communications Advisor

 

Conal Walsh / James Gilheany/ Kelsey Traynor/ Richard Seed

acg@palatine-media.com

 

Inside Information

This announcement contains inside information within the meaning of Article
7(1) of the EU Market Abuse Regulation No. 596/2016 as it forms part of UK law
by virtue of the European Union (Withdrawal) Act 2018 ("EUWA").

 

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