Caterpillar Credito S.A., the Panamanian subsidiary of Caterpillar Financial, has approved an initial $5 million leasing facility to Petaquilla Minerals’ subsidiaries, Petaquilla Gold and Panama Development of Infrastructure (PDI Panama). This will allow Petaquilla to increase the robustness of its power generation system through the acquisition of a new 2 MW Caterpillar Diesel power generator.
Also PDI Panama, the company’s infrastructure subsidiary, will be able to acquire heavy equipment to be used in heap leach operations as well as secondary equipment (e.g. lifters and telehandlers) to operate the warehouses and the heavy equipment shop designed for mechanical maintenance of light and heavy equipment. This equipment will also be used for the removal and sale of the aggregate from the Molejon pit which will open up access to the gold bearing zone lying beneath the aggregate.
The proposed facility is subject to, among other terms and conditions, a 6% fixed annual interest rate over five years with the option to purchase each Caterpillar equipment item at the end of the period with a final payment of $1.
Petaquilla Minerals is a gold producer operating its gold processing plant at its 100% owned Molejon gold project in Panama. The Molejon mine site is located in the south central area of the company’s 100% owned 842 km2 concession lands, a region known historically for gold content.