White Tiger Gold Ltd.

White Tiger Gold Ltd.

January 31, 2012 07:00 ET

White Tiger Announces Signing of VTB $150m Loan Facility to Fund Expansions in Russia

ROAD TOWN, TORTOLA, BRITISH VIRGIN ISLANDS--(Marketwire - Jan. 31, 2012) - White Tiger Gold Ltd. (TSX:WTG) ("White Tiger Gold" or the "Company") announced today that it has signed loan agreements with VTB Capital plc ("VTB") to enter into 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.

The first tranche will be used to settle existing loan facilities in Russia and to support the Company's planned expansion of its Savkino mine in order to achieving a doubling of the annual production capacity starting from 2013 based on expanding the existing pit on north-east flanks and construction of a new pit on the southwestern flank of the Savkino deposit.

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.

Terms and purpose of the use of the remaining US$70 million of the facility is subject to a further discussion between VTB and the Company. Details of the loan facility are provided in the table below:

Final Maturity Date: 60 months from the date of execution of the Facility agreement. The Final Maturity Date may be extended for up to 24 months at the sole discretion of the Lender.
Interest Rate: Floating, 3m LIBOR plus a margin of 8 to 14% per annum, based on the annual gold production level, within the range for 200koz to 100koz per annum.
Arrangement Fee: 2.0% flat of the Facility Amount payable from each drawdown on a pro rata basis.
Security: The Security for the Facility will include the shares in the Russian legal entities owned by White Tiger Gold

"With the assistance of VTB Capital the Company has increased its financial strength required to meet its planned development growth targets and advancing White Tiger's goal of being a mid-tier gold producer," noted Daniel Major, CEO of White Tiger Gold.

About White Tiger Gold

The Company is a TSX-listed mining and exploration company, focused on mine expansion and the development of mineral resources in Canada, the Russian Federation, and Peru. The Company currently operates the Lamaque Mine in Val D' Or, Quebec; Savkino heap leach gold operation located in southeastern Siberia; and the San Juan Gold Mine in San Juan Valley, Peru. Plans are underway to expand gold production at each of Lamaque, San Juan and Savkino and to develop a gold-copper mine at the Company's Nasedkino property situated in Chita Region in southeast Siberia with the goal of becoming a mid-tier gold producer. The Company also holds three additional early-stage gold exploration licenses in prospective geological environments located in central and northeast Siberia.

Forward-Looking Statement:

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, the completion of the planned production expansions Lamaque, San Juan and Savkino, and the development of the Company's Nasedkino property. 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: uncertainties relating to the interpretation of the geology, continuity, grade and size of estimates; unanticipated operational or technical difficulties; changes in the availability of qualified personnel; 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 its 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 and information 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 and information, 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 and information are reasonable, forward-looking statements and information are not guarantees of future performance and accordingly undue reliance should not be put on such statements or information due to the inherent uncertainty therein.

Contact Information