PERTH (miningweekly.com) – Junior Capricorn Metals will start the drawdown on an A$80-million Macquarie Bank debt facility to develop its Karlawinda gold project, in Western Australia, after satisfying all conditions precedent for the financing.
Capricorn is expected to produce first gold at Karlawinda in the June quarter of next year, with the miner saying on Tuesday that the forecast development cost remained in line with guidance at between A$165-million and A$170-million.
“The development of Karlawinda is proceeding on time and on budget. The satisfaction of all the conditions precedent to the first drawdown of the A$80-million debt facility is another milestone in derisking the development of the project,” said executive chairperson Mark Clark.
“It sees us fully funded with a significant contingency to our forecast cost to complete. We continue to put all our efforts into the development of the project and look forward to commencing Australia’s next new gold mine at 110 000 oz/y to 125 000 oz/y run rate in mid-2021.”
The Karlawinda project is expected to produce 660 955 oz over an eight-and-a-half-year mine life.