TORONTO, ONTARIO--(Marketwire - Sept. 17, 2012) - White Tiger Gold Ltd. ("White Tiger" or the "Company") (TSX:WTG) announces that it has initiated the process to fulfill the conditions precedent to its drawdown of US$19 million of Tranche B from the US$150 million senior secured term loan facility (the "VTB Facility") entered into between the Company's wholly-owned subsidiary Diascia Investments Limited ("Diascia") and VTB Capital plc ("VTB") on February 2, 2012.
The funds under the VTB Facility are to be made available in three tranches, with the initial US$80 million of the facility divided equally into Tranches A and B. Tranche C, in the amount of US$70 million, remains uncommitted; however Diascia may make a written request for VTB to make these funds available, following which the Company and VTB would enter into further discussions.
On March 26, 2012, Tranche A, in the amount of US$40 million, was received by Diascia. A portion of the proceeds of Tranche A was used to repay existing secured and unsecured bank loans and this tranche has now been used in its entirety. Tranche B, in the amount of US$40 million, will be made available by Diascia upon the fulfillment of certain conditions precedent, including the delivery to VTB of an acceptable National Instrument 43-101 technical report on the Nasedkino and Uryum licence areas.
The Company is proceeding on the basis that all conditions precedent to allow for an initial drawdown of US$19 million from Tranche B of the VTB Facility will be satisfied in the next 30 days; however, in the event that such conditions are not satisfied, the Company will consider other strategic financing alternatives, including the sale of certain of its non-material Russian assets.
About White Tiger
The Company is a TSX-listed mining and exploration company, focused on the development of mineral resources in the Russian Federation.
Caution Concerning Forward-Looking Information
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 (collectively, "forward-looking statements") relating, but not limited to, the Company's expectations, intentions and beliefs (including, without limitation, statements regarding, the VTB Facility, including the Company's ability to draw on Tranche B of the VTB Facility (and the timing thereof) and Company's consideration of other financing alternatives). Words such as "may", "will", "should", "anticipate", "plan", "expect", "believe", "estimate" and similar terminology are used to identify forward-looking statements. Such statements are based on assumptions, estimates, opinions and analysis made by the management of the Company 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 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. Risks and uncertainties that may cause actual results to vary include but are not limited to the Company's failure to satisfy the conditions precedent to draw on all or any of Tranche B of the VTB Facility, and those risks set out in the Company's public documents filed on SEDAR. Although the Company believes that the assumptions and factors used in preparing the forward-looking information are reasonable, undue reliance should not be placed on such information, which only applies as of the date of this press release, and no assurance can be given that such events will occur in the disclosed time frames or at all.
Any forward-looking statement speaks only as of the date on which it is made and, except as may be required by applicable laws, the Company disclaims any intent or obligation to update any forward-looking statement, whether as a result of new information, future events or results or otherwise. Although the Company believes that the assumptions inherent in the forward-looking statements are reasonable, forward-looking statements are not guarantees of future performance and accordingly undue reliance should not be put on such statements due to the inherent uncertainty therein.