JOHANNESBURG (miningweekly.com) – The Commonwealth Bank of Australia and the National Australia Bank will provide A$60-million in debt to Gascoyne Resources to advance the 100 000-oz/y Dalgaranga gold mine in the Murchison province of Western Australia.
The debt facility represented a “strong vote of confidence” in the project, Gascoyne MD Mike Dunbar said on Thursday.
The project is currently in the construction phase and is set to produce its first gold in the second quarter of next year.
The debt facility has a term of 4.5 years from first drawdown, which is expected in mid-December, and makes provision for early repayment without penalty. It has a mandated hedging stipulation of 164 000 oz, which has been completed at an average hedge gold price of about A$1 710/oz. Gascoyne noted that the rolled out hedged gold price would be determined and announced once the hedges were novated to the financiers and the delivery schedule had been arranged.
Dalgaranga has an initial life of six years, producing 115 000 oz/y for the first two years and then an average of 100 000 oz/y for the remaining four years at an all-in sustaining cost of about A$1 000/oz.