PERTH (miningweekly.com) – ASX-listed Eastern Goldfields has secured A$25-million in debt facilities, allowing the company to start gold production in the first quarter of 2017.
The credit-approved debt facilities include a A$15-million revolving loan facility, a A$10-million equity-linked facility, and gold hedging for 40 000 oz, half of which Eastern Goldfields is required to undertake, and the balance at the discretion of the company.
Eastern Goldfields reported on Wednesday that the facilities would be used to complete the refurbishment of the Davyhurst processing plant and to provide working capital through to the start of gold production.
Eastern Goldfields executive chairperson Michael Fotios said on Wednesday that the A$25-million debt finance commitment meant that the company was fully funded to complete the refurbishment of the Davyhurst processing plant, with the work already well advanced, with more than 100 contractors mobilised on site to accelerate the construction schedule in readiness for the start of mining in January and the subsequent commissioning of the plant.
The 1.2-million-tonne-a-year Davyhurst gold processing plant has been on care and maintenance since 2008, and is being refurbished and recommissioned to process ore from the nearby production sources within the Davyhurst hub.
Edited by: Creamer Media Reporter
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