JOHANNESBURG (miningweekly.com) – ASX-listed Crater Gold Mining has secured a $4-million unsecured loan facility with major shareholder Freefire Technology that will enable it to continue to advance its flagship Crater Mountain gold project, in Papua New Guinea.
The loan will be used to restart exploration activities at the mine, including drilling, and also the restart of mining operations at the high-grade zone (HGZ).
The funds will also further exploration activities at Crater’s North Queensland polymetallic and graphite projects.
The first $1-million in funding is available at the option of the company, with the balance of $3-million requiring the consent of Freefire prior to a drawdown request being executed. Key terms of the loan facility include an interest rate of 12% a year, payable quarterly in arrears. The repayment of the facility will occur after the next equity raising or convertible note raising with the amount repaid to be determined upon the board considering the company’s financial position and future cash requirements.
Crater MD Russ Parker said on Monday the funding enabled the company to move confidently into 2018, well financed to continue working on its key priorities. “The funding will also allow us to start a drilling programme at the mixing zone project during 2018 and to also explore the other significant exploration targets that exist on other licences the company holds at Crater Mountain.
“We are focused on putting this funding [to work] as productively as possible [toward] advancing our projects and generating positive results from our exploration and mining activities, which we hope will put us in a good position to support future capital raisings,” he added.