Republic Gold Limited Stock Market Press Releases and Company Profile
Republic Gold Limited (ASX:RAU) Advances Financing Plan for Amayapampa Gold Project With Jennings Capital Inc.
Republic Gold Limited (ASX:RAU) Advances Financing Plan for Amayapampa Gold Project With Jennings Capital Inc.

Sydney, Sep 30, 2010 AEST (ABN Newswire) - The Directors of Republic Gold Limited (googlechartASX:RAU) ("Republic" or "Company") today announce that the Company has appointed Jennings Capital Inc. of Canada ("JCI" or "Jennings") as its Canadian mergers & acquisitions and equity financial advisor in connection with a proposed structured and staged project financing of the Amayapampa Gold Project ("Project") in Bolivia. Following a successful Amayapampa site visit by the President & Chief Executive Officer of Jennings, the investment bank will work in the Canadian capital markets to facilitate the raising of the remaining equity component of the construction costs to fully fund the Project.

Key Points

- Patersons Securities Limited raised $2m via a Placement on 10 September 2010 and has underwritten up to $4m of the Share Purchase Plan.

- Jennings Capital Inc. a leading Canadian resources investment banking group appointed as Republic's Canadian equity financial advisor for the Amayapampa Gold Project (the "Project") in Bolivia.
- Republic appointed BDP Sociedad de Titularizacion S.A. ("BDP") , Bolivia's largest securitization specialist to structure and arrange up to US$100m in bond financing in the local capital markets. Bolivian bond market financing is currently being successfully accessed by a range of foreign and domestic mining companies.

The Company's debt advisor CPM Group of New York recommended to Republic's Board of Directors that it appoint La Paz-based BDP to structure and arrange a securitization bond issue for up to US$100m for Minera Nueva Vista SA, Republic's Bolivian subsidiary. BDP was formally appointed on 3 September 2010. The Company believes that a bond issue of this size will provide funding for approximately 70+% of total construction costs of the Project and indicative financing terms demonstrate highly competitive interest rates, with no requirement for gold price hedging or political risk insurance.

Jennings Capital Inc.

The President and Chief Executive Officer of Jennings Capital Inc based in Toronto accompanied Republic's corporate financial advisors, Carling Capital Partners on a recent field trip to Bolivia. A very positive site visit was completed with Jennings and their independent mining consultant and subsequent negotiations with the Company have resulted in Jennings' appointment. Jennings is a leading investment dealer in Canada with offices in Toronto, Calgary & Halifax. The privately held firm provides investment banking services, equity sales & trading and research and private client services and over the past 15 years has completed over CAN$4B in transactions. Jennings has a strategic alliance with Canada's largest TSX listed financial services group Western Financial Group Inc which has access to over 180,000 clients across Canada. The Investment Banking team at Jennings Capital Inc. has a successful track record of financing and advising both large and small high-growth companies in the resources sector with market penetration into institutional and private clients in Europe, the Americas and Asia.

The Canadian equity capital markets present a valuable opportunity for Republic to tap into buoyant investor appetite for low cost Latin American gold mining projects.

Background on NAFIBO

BDP Sociedad de TitularizacionS.A., is Bolivia's largest securitisation specialist with an approximate market share of 80% for securitization debt financing. It has been in operation since 1996 and is indirectly owned by Corporacion Andino de Fomento and the Republic of Bolivia. Importantly, BDP has completed a number of securitisation term debt financings involving greenfield projects across multiple sectors including the mining industry.

The Company continues to examine other funding opportunities, which may include multi-lateral agencies, equipment fleet financiers and local equity participation.

Funding Strategy and Timing

The Company's funding strategy for the Project has now developed to the point where funding sources, amounts and timeframes are being determined.

- Short-term funding - Patersons Securities Limited successfully placed 200m shares on 10 September 2010 to raise $2m and have underwritten the Share Purchase Plan up to $4m, raising funds for developing the Project and for working capital purposes.

- Medium-term funding - Jennings Capital Inc has been appointed to raise equity of sufficient size to allow the Company to commence construction of the Amayapampa Project.

- Longer-term funding - BDP appointed to structure and arrange a Bolivian bond issue to raise up to US$100m to complete construction and commence gold production. The administrative and regulatory approval process in Bolivia is expected to take approximately six months.

This strategy for funding will minimize the time to production, with long lead items currently being identified for placement of orders upon successful completion of medium-term funding.

Board & Management

The Board of Directors is working actively with senior management in Australia and Bolivia to continue the Company's progress on developing the Project. The Company's Managing Director, Mr John Kelly, is supported by Mr Neb Zurkic, the Company's Technical Director, who is employed full time to continue refining the Amayapampa Bankable Feasibility Study with Republic's Project Manager in Bolivia, Mr Paul Pyke. Ms Maria-Esther Jitton, Republic's President in Bolivia, continues to manage the socialization process and government relations with independent director, Mr Greg Barns providing additional support as required.

The Board intends to seek supplementary directors, as well as additional personnel with relevant mining development experience to take the Company through its next phase of development. The search for mining industry professionals is underway and updates will be provided on any appointments made.


Peter Wicks
Republic Gold Limited

Luke Dean
Fortbridge Investor Relations
TEL: +61-2-9331-0655
MOB: +61-414-535-433

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