PERTH (miningweekly.com) – ASX-listed Calidus Resources has inked final agreements with Macquarie Bank for A$110-million worth of project loan facilities to fund work at the Warrawoona gold project, in Western Australia.
The two companies in November of last year announced the debt financing, which would have a 3.25-year tenor from the start of repayments in June 2022, and could be repaid early at any time without restrictions or financial penalty.
A mandatory hedging of some 105 000 oz has been implemented, with deliveries spread over the tenor of the facility, with the hedging accounting for some 25% of forecast production over this period.
Calidus on Tuesday also announced that it had executed a power purchase agreement with Zenith Energy to provide 8 MW of power demand to the Warrawoona operation through a 10.74 MW installed capacity high efficiency liquefied natural gas fuelled reciprocating generation facility, along with an 8 MW installed capacity backup diesel generation facility.
“We are very pleased to have executed final debt financing agreements with Macquarie. The timing of which coincides with GR Engineering mobilising to site to begin civil works at Warrawoona and the execution of a power purchase agreement with Zenith,” said Calidus MD Dave Reeves.
“Calidus is fully funded and focused on successfully developing the Warrawoona gold project and becoming a leading independent gold producer, with first production on schedule for early 2022.”
An updated prefeasibility study into the Warrawoona project found that some 623 086 oz of gold could be recovered over an initial mine life of eight years, with pre-production capital estimated at A$116-million.