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Trans-Siberian taps £9.4M debt financing

Russia-based gold producer Trans-Siberian Gold has signed on for a £9.4 million (US$12 million) four-year loan facility agreement with VTB Bank.
Trans-Siberian taps £9.4M debt financing Trans-Siberian taps £9.4M debt financing Trans-Siberian taps £9.4M debt financing Trans-Siberian taps £9.4M debt financing Trans-Siberian taps £9.4M debt financing

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Staff reporter

The funds will be used to repay part of subsidiary ZAO Trevozhnoye Zarevo's debt to Trans-Siberian, which also wants to buy back 22.9 million shares from two major stakeholders, UFG Private Equity Fund I and Destin Investment Management.

The share buyback was proposed earlier this month to cut UFG Asset Management's domination of Tarbs-Siberian's share register.

The loan has an annual interest rate of 10.7%, in line with market rates for rouble-denominated loans in Russia.

Trans-Siberian's shares (AIM:TSG) dropped 5.66% Thursday to 50p.