White Tiger Gold Starts Expansion of Savkino Gold Mine
TORONTO, ONTARIO -- (Marketwire) -- 03/29/12 -- White Tiger Gold Ltd. ("White Tiger") (TSX: WTG) announced today the Company has received and putting to use the first $40 million tranche of financing, secured in December 2012 from VTB Capital plc ("VTB") to implement the Phase 2 of expansion at the Savkino Gold Mine.
The construction and expansion on the Savkino Gold Mine will include the following: construction of the second pit in the southwestern flank of the deposit; expansion of mining fleet; construction of a second crushing and screening unit; new heap leaching pads; expansion of the existing gold recovery plant; and the camp and auxiliary production facilities. These changes will enable an increase in production capacity by one million tonnes of ore per annum.
"These new production facilities will more than double gold production at the Savkino Gold Mine starting the second quarter of 2013," said Daniel Major, President and CEO of White Tiger Gold. "All construction and assemblage works are expected to be completed by the first quarter of 2013."
On December 5, 2011, White Tiger Gold entered into an agreement with VTB Capital plc ("VTB") to enter an agreement for a senior secured term loan facility of up to US$150 million to fund the Company's production, development and exploration activities. The funds are to be made available in three tranches, with the initial US$80 million dollars of the facility planned to be divided into two tranches of US$ 40 million.
A second tranche of the facility is to be used for capital development of the planned 80,000 ounce per annum Nasedkino project, which is currently forecast to be commissioned in 2014, with design capacity to be achieved in 2016.
About White Tiger Gold
White Tiger Gold Ltd. is a TSX-listed mining and exploration company, focused on the development of mineral resources in Canada, the Russian Federation and Peru.
Caution Concerning Forward-Looking Information
This news release contains forward looking statements within the meaning of the United States Private Securities Litigation Reform Act of 1995 and forward-looking information within the meaning of applicable Canadian securities laws including with respect to the entering into of a definitive loan facility agreement with VTB and the completion of the business combination between White Tiger Gold and CMC. Words such as "may", "will", "should", "anticipate", "plan", "expect", "believe", "estimate" and similar terminology are used to identify forward-looking statements and forward-looking information. Such statements and information are based on assumptions, estimates, opinions and analysis made by the management of White Tiger Gold in light of their experience, current conditions and their expectations of future developments as well as other factors which they believe to be reasonable and relevant. Forward-looking statements and information involve known and unknown risks, uncertainties and other factors that may cause actual results to differ materially from those expressed or implied in the forward-looking statements and information. Risks and uncertainties that may cause actual results to vary include but are not limited to: the conditional nature of the agreement between VTB and White Tiger Gold, including the completion of satisfactory due diligence by VTB on White Tiger Gold and CMC; the conditional nature of the business combination between White Tiger Gold and CMC, including the requirement for approval of the business combination by the shareholders of each of CMC and White Tiger Gold, the TSX, the TSX Venture Exchange, the Ontario Superior Court of Justice as well as any required approval under the Investment Canada Act; any exercise by White Tiger Gold of its rights of termination under the arrangement agreement between White Tiger Gold and CMC (together, the "Companies") dated as of March 11, 2011, as amended June 16, 2011; changes in equity and debt markets; fluctuations in gold and other commodity prices; as well as other risks and uncertainties which are more fully described in White Tiger Gold's Annual Information Form dated March 30, 2011 and annual and quarterly Management's Discussion and Analysis and in other filings made by White Tiger Gold with Canadian securities regulatory authorities and available at www.sedar.com.
Any forward-looking statement speaks only as of the date on which it is made and, except as may be required by applicable laws, White Tiger Gold disclaims any intent or obligation to update any forward-looking statement, whether as a result of new information, future events or results or otherwise. Although White Tiger Gold believes that the assumptions inherent in the forward-looking statements are reasonable, forward-looking statements are not guarantees of future performance and accordingly undue reliance should not be put on such statements due to the inherent uncertainty therein.