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Avesoro set to acquire $17.1m in heavy mining equipment

12th December 2017

By: Natasha Odendaal

Creamer Media Senior Deputy Editor

     

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JOHANNESBURG (miningweekly.com) – TSX- and Aim-listed Avesoro Resources’ Bea Mountain Mining subsidiary has entered into finance agreements to acquire $17.1-million in heavy mining and additional auxiliary equipment for New Liberty gold mine, in Liberia.

The equipment finance facility agreements with Mapa İnşaat ve Ticaret AŞ will allow for the purchase of three Sandvik DP1500 surface drills, three Komatsu PC1250 excavators and eight Komatsu HD785 haul trucks, as well as additional auxiliary support equipment including a Komatsu GD655 grader, two Komatsu D275A dozers and two Bomag BW213 drum rollers.

The West African gold producer expects delivery of the equipment to New Liberty to occur throughout the remainder of this year and early in the first quarter of 2018.

The finance agreements also include the purchase of eight MTU on-site energy 2 290 kVA diesel generators to replace the existing rented power generation facility on site at New Liberty and bring the generation of power in-house to reduce operating costs.

The equipment finance loans under each of the finance agreements are unsecured, with interest charged at 6.5% a year on the dollar-denominated loan amount of about $7.3-million and 5.5% a year on the euro-denominated loan amount of €8.3-million, equivalent to $9.8-million.

The loans are repayable in cash in eight equal semi-yearly instalments, the first of which will fall due six months after use of the loan.

Edited by Creamer Media Reporter

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