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Wednesday, January 25, 2017 Derek Macpherson

VIT Takes First Step Towards Financing Eagle


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Victoria Gold Corp. (TSXV:VIT) announced it has signed an engagement letter with BNP Paribas (EPA:BNP) to arrange a US$220 million (C$289 million) project debt facility. The syndicated facility is expected to have a tenor of six years and close in Q2 2017. This is an important de-risking step for Victoria to progress the fully permitted Eagle project towards production. This debt coupled with Victoria’s strong cash position at the end of FQ3 2016 (C$62.9 million in cash + marketable securities) moves Eagle closer to production, however, Victoria is likely to need additional capital to fully fund the project (C$50-80 million). At 0.66x NAV, Victoria currently trades at a premium to peers (0.54x NAV), while trading at a discount on a per ounce basis, or C$37/oz versus peers at C$55/oz. We believe Victoria’s premium valuation versus peers is warranted given the project’s scale, jurisdiction and permits. The company’s 2017 exploration program in conjunction with closing of the project financing has potential to be positive catalysts for the stock.



Derek Macpherson | VP Mining Analysis
Sunneva Bernhardsdottir | Associate, Mining Analysis
Victoria Ellis Hayes | Associate
 
Red Cloud Klondike Strike Inc.
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Company Specific Disclosure Details
Victoria Gold Corp. - TSXV:VIT - 1,2,4
BNP Paribas - EPA:BNP - None

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