12th Sep 2013 10:43
LONDON (Alliance News) - Aureus Mining Inc. Thursday said it has secured USD100 million in debt financing for its New Liberty Gold Project in Liberia.
The gold-mining company, with operations in Liberia and Cameroon, said it received USD88 million from Nedbank Ltd and a further USD12 million from RMB Resources, a division of FirstRand Bank Limited, to support the project.
New Liberty is to be the first commercial gold mine in Liberia and will produce an average of 119,000 ounces per annum at 3.6 grams per tonne for the first six years with first gold scheduled for December 2014. The project has incurred an estimated capital cost of USD18 million so far and the total cost to develop the operation is put at USD136 million.
The project debt facility has a six-year loan term and an overall annual cost of funding at 5% including LIBOR and insurance coverage, while a hedging policy has been agreed with the banks involved.
"Obtaining credit committee approvals for the debt facilities for the New Liberty project provides Aureus with the green light to build Liberia's first-ever commercial gold mine," Chief Executive David Reading said in a statement.
Aureus Mining shares were up 1.02 pence, or 2.7% to 39.02 pence Thursday.
By Tom McIvor; [email protected]; @TomMcIvor1
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