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Gold|Mining|Underground|Operations
gold|mining|underground|operations

Caldas Gold to raise $90m for expansion

25th August 2020

By: Mariaan Webb

Creamer Media Senior Deputy Editor Online

     

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TSX-V-listed Caldas Gold is looking to raise up to $90-million to fund the expansion of its mining operations in the Marmato Deeps Zone (MDZ) in Colombia.

The company on Monday announced a proposed issuance and sale of up to 90 000 subscription receipts at $1 000 each, on a fully-marketed private placement.

The terms of the offering were negotiated with Scotiabank and Canaccord Genuity, as co-lead agents on behalf of a syndicate of agents including Stifel Nicolaus Canada and Red Cloud Securities.

Closing of the offering is expected to occur on August 26.

In June, Caldas entered into a $110-million precious metals purchase agreement with Wheaton as the first step in securing financing for the expansion in the MDZ.

A prefeasibility study (PFS), published in July, confirmed the economic viability of an underground expansion at Marmato.

Over the 14-year mine life based on mineral reserves in the PFS, production is estimated to total 1.9-million recoverable ounces of gold and 1.6-million recoverable ounces of silver from the existing Upper Mine and the expansion of the second operation into the MDZ.

Gold production will average about 165 400 oz/y from 2024 through 2033 once the MDZ is in full production with LoM total cash cost of $772/oz of gold and an average LoM all-in sustaining cost of $872/oz of gold.

Stock in Caldas rose 7.3% to C$2.50 a share.

Edited by Creamer Media Reporter

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