PERTH (miningweekly.com) – Metals developer Capricorn Metals has secured a A$107-million funding package to develop its Karlawinda gold project, in Western Australia.
The project finance facility, secured from Macquarie Bank, includes a senior project finance facility of A$81-million, a bank guarantee facility of A$19-million, and a working capital facility of A$7-million.
Security for the facility is provided through a fixed and floating charge over the assets of Capricorn subsidiary Greenmount Resources. A hedging facility over 250 000 oz, over the five-and-a-half-year term of the loan, is also included in the transaction.
“This is a significant milestone for the project and a major step forward in the development of the Karlawinda project,” said Capricorn nonexecutive chairperson Debra Bakker.
“The Macquarie Bank funding package reflects the quality of the project and the significant work undertaken by the Capricorn team over the last 12 months following the completion of the feasibility study in October 2017, and optimisation study in June 2018.
“This outstanding result removes a significant impediment to the development of the project, and we can now push ahead to become Australia’s newest gold producer.”
The optimisation study estimated a capital requirement of A$132-million to develop the 1.5-million-ounce Karlawinda project, which is expected to produce 660 955 oz over an eight-and-a-half-year mine life.