VANCOUVER, BRITISH COLUMBIA–(Marketwire – June 18, 2012) – Edgewater Exploration Ltd. ("Edgewater" or the "Company") (TSX VENTURE:EDW)(OTCQX:EDWZF) is pleased to announce that it has entered into a mandate letter with two lenders for up to $120 million of project financing to develop the Corcoesto Gold Project, Galicia Spain. The lending group is comprised of Credit Suisse AG and Barclays Bank PLC.
"This is a major milestone for Edgewater to be able to arrange a very substantial portion of the estimated $160 million capital financing needed for the Corcoesto Gold Project," stated George Salamis, President and CEO. He adds, "Edgewater continues to progress with the Bankable Feasibility Study which is expected to be completed during Q4, 2012. We believe that the bank's involvement in the financing of Corcoesto, is a testament to the project's future ability to produce gold at a reasonable cost and return, in addition to the local support for the project demonstrated at the ground level in Galicia, Spain."
The mandate letter has preliminary approval of each of the proposed lenders with final approval subject to completion of lenders due diligence, final credit approval and negotiation, Bankable Feasibility Study and execution of a loan agreement.
The key terms of the mandate letter are up to $120 million of senior debt for a term of up to seven years. The interest rate is LIBOR (London Interbank Offer Rate) based, loan repayments are quarterly and there is a prepayment provision of a portion of excess free cash flow.
The funding under this facility will be subject to the customary conditions precedent for a financing of this type including the issuance of a mine permit and the necessary permits required for construction and equity investment by Edgewater. There is no certainty that the transaction contemplated in the mandate letter will be successfully completed.
About Edgewater Exploration Ltd.
Edgewater is a mineral development and exploration company focused on the development of precious metal properties. Edgewater has an experienced mine building and operating team with a track record of success. The Company is currently developing the Corcoesto Gold Project in northwest Spain, and exploring the Enchi Gold Project in Ghana, West Africa.
On behalf of the board of EDGEWATER EXPLORATION LTD.
George Salamis, President and CEO
Forward-Looking Statements: This news release contains certain forward-looking information concerning the business of Edgewater Exploration Ltd (the "Corporation"). All statements, other than statements of historical fact in particular, statements herein about the completion of the Bankable Feasibility Study, estimates of capital costs and availability of senior debt. These forward-looking statements are based on the opinions of management at the date the statements are made and are based on assumptions and subject to a variety of risks and uncertainties and other factors that could cause actual events to differ materially from those projected in forward-looking statements. Important factors that could cause actual results to differ materially from the Corporation's expectations include the due diligence being completed by the lenders and the results of the Bankable Feasibility Study. The Corporation is under no obligation to update forward-looking statements if circumstances or management's opinions should change, excepting as required by applicable securities laws. The reader is cautioned not to place undue reliance on forward-looking statements.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.