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Unformatted text preview: 2016 are reduced to $13.0 million and $7.0 million, respectively. The Company may
prepay the loan in whole or in part, without penalty, but subject to customary break costs, if any. The agreement
contains various requirements that include limits on distributions if certain minimum debt service coverage
levels are not achieved. Land, plant and equipment with a carrying amount of $197.4 million (December 31,
2011 - $231.3 million) are pledged as security as part of the Kupol loan.
As at December 31, 2012, cash of $34.0 million (December 31, 2011 - $34.0 million) was restricted for payments
related to this loan. v. Finance leases
As at December 31, 2012 and 2011, the finance lease obligations are as follows: December 31, 2012
Less than one year December 31, 2011
Interest $ 3.3 $ -$ 3.3 $ 10.0 $ 0.5 $ 9.5 $ 3.3 $ -$ 3.3 $ 3.4
13.4 $ 0.1
0.6 $ 3.3
12.8 Between one and five years The Company recorded interest expense related to the finance leases of $0.5 million and $1.1 million for the
years ended December 31, 2012 and 2011, respectively.
The cost of the assets and the accumulated
depreciation related to the finance leases was $39.8 million and $24.7 million, respectively as at December 31,
2012 (December 31, 2011 – $39.8 million and $20.2 million). The depreciation expense related to these assets
for the year ended December 31, 2012 was $4.5 million (year ended December 31, 2011 - $6.1 million).
In November 2009, the Company entered into a Letter of Credit guarantee facility with Export Development
Canada for $125.0 million. Letters of credit guaranteed by this facility are solely for reclamation liabilities at Fort
Knox, Round Mountain, and Kettle River–Buckhorn. Fees related to letters of credit under this facility are 1.00%
On July 30, 2010, the Company entered into an amendment to increase the amount of the Letter of Credit
guarantee facility from $125.0 million to $136.0 million.
On June 15, 2012 the Company entered into a further amendment of the Letter of Credit gua...
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- Spring '14