Teranga Gold Completes Stream Financing, Acquisition of OJVG, and Retires Debt Facility

Teranga Gold Corporation completed a US$135-million stream financing transaction with an affiliate of Franco-Nevada Corporation. The funding from the stream financing transaction allowed Teranga to acquire the remaining interests of Oromin Joint Venture Group Ltd. (OJVG) that it did not previously own from Bendon International Ltd. and Badr Investment & Finance Company and to retire US$30 million of its US$60-million bank debt facility with Macquarie Bank Limited.

The stream agreement has an initial 40-year term and requires Teranga to deliver 22,500 ounces of gold annually over the first six years to Franco-Nevada followed by 6 per cent of production thereafter. Franco-Nevada's purchase price per ounce is set at 20 per cent of the spot gold price.

Teranga Gold Corporation was represented in-house by David Savarie and Chantal Da Silva, and by Stikeman Elliott LLP with a team including Donald Belovich, Christos Gazeas, Ryan Kirvan, Damian Lopez (M&A/securities), Justin Parappally and Vanessa Beamish (banking).

Franco-Nevada Corporation was represented in-house by Lloyd Hong, Chief Legal Officer and Corporate Secretary, and by Goodmans LLP with a team including Kari MacKay, Dan Dedic and Joanna Creed.
Bendon International Ltd. was represented by Norton Rose Fulbright with a team including Julie Tassi and Jeffrey Goodman.

With respect to the amendment to the bank debt facility, Macquarie Bank Limited was represented in-house by Julia Hilbert, and by Blake, Cassels & Graydon LLP with a team including David Zacks, Francesca Hennigar and Jennifer Ruddick.