PERTH (miningweekly.com) – ASX-listed Beacon Minerals will raise A$18-million through a debenture issue to professional and sophisticated investors to fund the restart of its Jaurdi gold project, in Western Australia, in the first quarter of 2019.
A prefeasibility study released last week found that the project could deliver 126 000 oz of gold for a capital investment of A$21.4-million, generating revenue of A$208.5-million and an operating cash flow of A$98.4-million over a five-year mine life.
The project is estimated to have a net present value of A$70.49-million and an internal rate of return of 75%.
Jaurdi is expected to have a life-of-mine operating cash cost of A$830/oz, and an all-in sustaining cost of A$870/oz.
Beacon on Monday said to fund the restart of operations, the company would raise A$18-million through debenture issue, with directors Graham McGarry and Geoff Greenhill subscribing for a combined A$4.6-million of the debenture issue.
The proposed debentures will be secured by mortgage against the Jaurdi gold project’s mining leases, and security over the company’s plant and equipment used at the mining site.
Beacon shareholders are expected to vote on the transaction in an upcoming general meeting.