PERTH (mningweekly.com) - Suitor Great Panther Silver has provided ASX-listed gold miner Beadell Resource with a $5-million loan, to fund general working capital requirements.
Beadell on Friday told shareholders that the loan would have an interest rate of 14% a year in arrears, and has a term to January 15, 2019.
TSX- and NYSE American-listed Great Silver Panther in September launched a friendly $105-million takeover for gold miner Beadell, which owns the Tucano gold mine, in Brazil.
Under the terms of the transaction, Beadell shareholders will receive 0.0619 common shares of Great Panther for each ordinary share of Beadell, implying a consideration of A$0.086 a Beadell share.
Beadell MD and CEO Dr Nicole Adshead-Bell said on Friday that the loan demonstrated Great Panther’s commitment to Tucano and to Beadell shareholders as the company advanced towards the completion of the scheme of arrangement in early 2019.
“Our cash flow was negatively impacted by the sparger issues in November, which restricted our ability to process higher grade sulphide ore as planned. The Tucano site time has focused on troubleshooting the oxygen plant sparger issues. A positive step change in plant performance was achieved in early December,” she added.
Gold production from Tucano during 2018 is forecast to be at the low end of the guidance of between 125 000 oz and 135 000 oz, while all-in sustaining costs are expected to be at the higher end of the guidance of between $1 000/oz and $1 400/oz.