PERTH (miningweekly.com) – ASX-listed Gold Road Resources on Monday told shareholders that it was considering a number of funding mechanisms to develop the Gruyere gold project, in Western Australia, including the formation of a joint venture (JV).
The company was responding to weekend reports that suggested Gold Road was seeking a buyer for a 30% to 40% stake in the Gruyere project.
Gold Road noted that while it had granted a number of Australian and overseas mining companies due diligence access to facilitate JV proposals, these discussions were at an early stage and remained incomplete.
In addition to the potential JV discussions, the company was also reviewing its short-term debt funding options, including debt, equity and mezzanine funding structures, to meet early deposit commitments that would be required on long lead-time capital assets for the Gruyere project, and was engaging with a number of banks around traditional debt and equity project financing structure.
A recent prefeasibility study into the Gruyere project estimated that the project would require a capital investment of A$455-million to deliver some 265 000 oz of gold over an initial mine life of 12 years.
The project development was based on a single large openpit mine and a conventional carbon-in-leach plant with a throughput of between 7.5-million tonnes and 8.8-million tonnes a year.
Edited by: Creamer Media Reporter
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