VANCOUVER (miningweekly.com) – Arizona-focused Northern Vertex Mining has secured a $20-million senior secured credit facility from Sprott Private Resource Lending to fund development costs of the company's 100%-owned Moss gold/silver project.
Northern Vertex president and CEO Kenneth Berry stated that the facility would fast-track the development of the $33-million project, located in the north-west of the state.
“With a $20-million facility from Sprott that contemplates an additional $8.5-million equipment finance facility, in combination with our recently completed C$7.35-million convertible debenture offering, we are now ideally positioned to capitalise on the robust economics the Moss mine offers, as we begin the transition into a fully operating gold-silver entity,” Berry said in a statement.
The Vancouver-based company has started strategic development and detailed engineering on the project; reclamation and earthworks at site will start shortly.
As a result of signing the Sprott facility, Northern Vertex will pay a $175 000 break fee to Macquarie Bank in connection with the engagement letter and credit-approved term sheet with Macquarie Bank, announced on July 7.
The Moss mine gold/silver project is an epithermal, brecciated, low sulphidation quartz-calcite vein and stockwork system that extends over a strike length of 1 400 m and has been drill tested to depths of 370 m vertically. It is a potential heap leach, openpit project that has been advanced to the feasibility study stage to ensure that technical, economic, permitting and funding requirements are met before proceeding with the development of the mine.
The project holds compliant measured and indicated resources of 15.48-million tonnes grading 0.87 g/t gold equivalent for 435 000 oz of gold equivalent, comprising 377 000 oz gold and 4.61-million ounces of silver.
There are also 2.18-million ounces in the inferred category, grading 0.62 g/t gold equivalent, comprising 38 000 oz gold and 390 000 oz silver.