Luna Gold Announces Funding of US$10 Million Sandstorm Debt Facility
VANCOUVER, BRITISH COLUMBIA--(Marketwired - Sep 27, 2013) - Luna Gold Corp. (TSX:LGC)(LMA:LGC)(OTCQX:LGCUF) ("Luna," or the "Company") is pleased to announce that the Company has drawn down US$10 million of its previously announced secured debt facility (the "Sandstorm Debt Facility") with Sandstorm Gold Ltd. ("Sandstorm").
The purpose of this loan is to provide additional working capital for the Company during the Phase I Expansion period. The Phase I Expansion remains fully funded.
The Sandstorm Debt Facility matures on June 30, 2017, carries an interest rate of 12% per annum and is guaranteed by Luna and its subsidiary Mineração Aurizona S.A. Under the terms of this agreement, Luna may commence a brownfield exploration program at the Aurizona Gold Mine, whereby Sandstorm would grant interest relief for a period of up to 16 months on the portion of the Sandstorm Debt Facility that funds such brownfield exploration.
About Luna Gold Corp.
Luna is a gold production company engaged in the operation, expansion, and exploration of gold projects in Brazil.
On behalf of the Board of Directors
John Blake - President and CEO
Forward-Looking Statements
This release contains certain "forward looking statements" and certain "forward looking information" as defined under applicable Canadian and U.S. securities laws. Forward-looking statements can generally be identified by the use of forward-looking terminology such as "may", "will", "expect", "intend", "estimate", "anticipate", "believe", "continue", "plans" or similar terminology. Forward-looking statements include, but are not limited to, statements with respect to future gold production and/or the results of analysis on gold production. Forward-looking statements are based on forecasts of future results, estimates of amounts not yet determinable and assumptions that while believed by management to be reasonable, are inherently subject to significant business, economic and competitive uncertainties and contingencies. Forward-looking statements are subject to various risks and uncertainties concerning the specific factors identified in Luna Gold Corp.'s periodic filings with Canadian Securities Regulators. These factors include the inherent risks involved in the exploration and development of mineral properties, the uncertainties involved in interpreting drill results and other exploration data, the potential for delays in exploration or development activities, the geology, grade and continuity of mineral deposits, the possibility that future exploration, development or mining results will not be consistent with the Company's expectations, accidents, equipment breakdowns, title matters, labor disputes or other unanticipated difficulties with or interruptions in production and operations, fluctuating metal prices, unanticipated costs and expenses, uncertainties relating to the availability and costs of financing needed in the future, the inherent uncertainty of production and cost estimates and the potential for unexpected costs and expenses, commodity price fluctuations, currency fluctuations, regulatory restrictions, including environmental regulatory restrictions and liability, competition, loss of key employees, and other related risks and uncertainties. The Company undertakes no obligation to update forward-looking information except as required by applicable law. Such forward-looking information represents management's best judgment based on information currently available. No forward-looking statement can be guaranteed and actual future results may vary materially. Accordingly, readers are advised not to place undue reliance on forward-looking statements or information.