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Excelsior Gold unveils Kalgoorlie North project funding details

Excelsior Gold unveils Kalgoorlie North project funding details

Photo by Bloomberg

13th July 2015

By: Esmarie Iannucci

Creamer Media Senior Deputy Editor: Australasia

  

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PERTH (miningweekly.com) – ASX-listed gold developer Excelsior Gold has accepted a funding package of up to A$15-million from Macquarie Bank to refinance a convertible loan and to make payments to fellow-listed Norton Gold Fields.

Excelsior on Monday reported that the facilities would comprise a project loan facility of A$12-million, repayable by the end of September 2017, and a gold hedge facility covering 50 800 oz of forward sales, which included a A$3-million call grant facility.

Excelsior inked a capital contribution and ore treatment with Norton in 2014, as part of its efforts to accelerate the development of the Kalgoorlie North gold project, in Western Australia.

The project was expected to recover 265 329 oz, deliver a net present value of A$37-million and earnings before interest, taxes, depreciation and amortisation of A$151-million.

Mining was initially proposed at five of the most advanced gold resources within the project’s 22 resource areas.

Under the terms of the Norton agreement, Excelsior would mine three small openpit areas in the Bardoc South project area for ore treatment before the end of December this year.

The Zoroastrian openpits would start in November this year and would provide ore treatment starting in January under a longer-term capital contribution agreement, which provided for a minimum 2.5-million-tonne treatment allocation to Norton’s Paddington mill.

Excelsior has committed to partly contribute to the capital expenditure required to potentially upgrade and refurbish the Paddington mill, with the company’s commitment capped at A$12.5-million.

Excelsior noted on Monday that the funding package with Macquarie was subject to a number of conditions precedent, including an equity or subordinated debt raising of A$7-million.

The company anticipated finalising the documentation for the funding over the coming weeks.

Edited by Mariaan Webb
Creamer Media Senior Deputy Editor Online

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