Lydian International entered into a secured credit facility with Caterpillar Financial Services UK for a principal amount of $42 million.

Proceeds of the term facility will be used to purchase Cat mobile mining equipment for Lydian’s Amulsar Gold Project in Armenia.

Construction at Amulsar started in October 2016. First gold production is expected during Q1/18.

The Cat term facility is available to be drawn in multiple advances through June 2018. Each advance will be repayable over a 75-month term, inclusive of a six-month initial repayment grace period. The Cat term facility bears an interest rate of LIBOR+4.5%. Principal security consists of specific equipment financed by Cat Financial. In addition, Lydian has provided an unsecured guarantee in favor of Cat Financial. All advances under the Cat term facility are subject to satisfaction of certain conditions.

Howard Stevenson, Lydian’s president and CEO, said, “We have crossed another major milestone in the development of the Amulsar gold mine and are extremely pleased to have Cat Financial support our future mining operations.”

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.