Sulliden enters into US$125 million project finance mandate with Credit Suisse and Barclays Bank for its Shahuindo Project

TORONTO, Nov. 8, 2012 /CNW/ - Sulliden Gold Corporation Ltd. ("Sulliden", or the "Company") (TSX:SUE; BVL:SUE; OTCQX:SDDDF) has entered into a mandate letter with Credit Suisse AG and Barclays Bank PLC to arrange a limited recourse project finance facility of up to US$125 million for the construction and development of the gold and silver Shahuindo Project in Peru.  The Company has approved indicative terms and conditions for the facility, which would bear interest rate of LIBOR plus 4.85% pre-completion, and LIBOR plus 4.35% post-completion.

Peter Tagliamonte, President and CEO of Sulliden, commented "We are very pleased with the opportunity to move forward with Credit Suisse and Barclays as our financing partners to develop the Shahuindo project in a minimally dilutive manner. A $125 million debt facility would fund a significant portion of the capital required for the first phase of the Shahuindo mine. The robust nature of our project economics is clearly demonstrated by the commitment of our lenders to this facility and we look forward to completing this transaction.  This marks another important de-risking event for the Shahuindo Project as we move towards becoming a gold producer."

 On September 26, 2012, Sulliden announced the completion of a positive Feasibility Study for the initial phase of its gold and silver Shahuindo Project located in Peru that highlighted a straightforward shallow open pit mine with a heap leach and conventional ADR plant for precious metal recovery. The project is projected to require initial capital of $131.8 million that will support a mining rate of 3.65 million tonnes per year, producing approximately 90,000 gold equivalent ounces per year at an average cash operating cost of $552 per ounce.

The Company and the Lenders will now proceed with project due diligence and documentation with a target of a financial close expected in the first quarter of 2013.  Closure of the facility is subject to receipt of internal credit approvals, provision of adequate due diligence and acceptable documentation.  The project finance facility will also include a gold price risk management facility to be agreed between the parties. The facility would encompass approximately 20% of life of mine ounces produced and the Company would have full exposure to the gold price on the balance.  The facility can take a number of forms regarding risk management; the Company is currently discussing a cashless collar of deep out of the money puts and calls to provide the maximize upside to the ounces within the facility.