PERTH (miningweekly.com) – Gold miner Cleveland Mining has signed a A$10-million investment facility with Boston-based Baycrest Capital, to fund the development of its Brazilian portfolio.
The ASX-listed Cleveland reported on Monday that the investment facility allowed the company to draw the cash down in tranches of up to A$500 000 each, over a three-year period.
Each draw-down would be matched by an issue of ordinary shares, priced at 100% of a weighted average market price formula.
MD David Mendelawitz noted that Cleveland was pleased to have flexible access to capital, particularly against the current constraints to finance in the resources sector.
“The facility shows solid support for Cleveland’s continuing development. We are set apart from other juniors in that we are a gold producer with multiple options to further expand our production and resource supply base.”
Mendelawitz added that the new source of funding gave Cleveland confidence to continue its Brazilian development, which included the optimisation of its Premier joint venture mine, and plans to start mining at the nearby, and soon to be gazette, O Capitao deposit.
Cleveland currently has two project hubs in Brazil. The Crixas hub is in the Goias state, while the Ampa hub is in the Ampa state.