Lydian International, through its wholly owned Armenian operating subsidiary, has entered into a secured credit facility with ING Bank for a maximum principal amount of up to $50 million.

Proceeds of the ING term facility will be used to purchase crushing, conveying and electrical equipment for Lydian’s 100%-owned Amulsar gold project in Armenia. Construction at Amulsar commenced in October 2016; first gold production is expected during the first quarter of 2018.

Howard Stevenson, Lydian’s president and CEO, commented, “We are extremely pleased to have secured the remaining source of equipment financing needed for development of Amulsar and look forward to working with ING Bank. This $50 million facility completes our financing plan, which now totals $440 million from all sources.”

The ING term facility is available to be drawn in multiple advances through April 2018. Each advance will be repayable over a 51-month term, beginning on the earlier of: (i) six months following final delivery of equipment to be financed using proceeds from the ING term facility, or (ii) October 31, 2018.

The ING term facility bears an interest rate of LIBOR plus 2.95%. Principal security consists of specific equipment financed by ING Bank, and a guarantee covering 85% of principal and interest under the ING term facility has been issued by the Swedish Export Credits Guarantee Board (EKN). The cost of the EKN guarantee will be financed using proceeds from the ING term facility. In addition, Lydian provided an unsecured guarantee in favor of ING Bank. All advances under the ING term facility are subject to satisfaction of certain conditions.

Endeavour Financial acted as financial advisor to Lydian.

Lydian is a gold developer, focusing on construction at its 100%-owned Amulsar gold project, located in south-central Armenia.