JOHANNESBURG (miningweekly.com) – Emerging gold development company Kin Mining has secured A$35-million from Canada’s Sprott Private Resource Lending for the construction of its Leonora gold project, in Western Australia.
The three-year loan provides Kin with sufficient funding to carry out preproduction capital works, including the relocation of the Lawlers mill to the Leonora project, which is scheduled to be in production in the second half of 2018.
“The credit facility will allow us to immediately start the development of the Leonora gold project and set us on a clear pathway to production and cash flow,” commented MD Don Harper.
The Leonora project is forecast to produce an average of 55 000 oz/y when in full production.
The credit facility will have an interest rate of 8%, plus the greater of 12-month London Interbank Offered Rate, or 1%. It also has flexible repayment terms and does not call for mandatory hedging.