Financial close for the A$60 million loan facility provided by National Australia Bank and Commonwealth Bank of Australia has been achieved, with Gascoyne Resources Ltd satisfying all conditions required to access funding through the facility. First utilisation of the loan facility has occurred with the company drawing down A$20 million to fund development costs over the coming months.
With this achievement, the development of the company’s 100% owned Dalgaranga project is fully funded, on schedule and on budget for first gold production late in Q2 of 2018.
Commenting on the loan facility, Gascoyne’s Managing Director Mike Dunbar said: “Achieving Financial Close and first drawdown of the debt for the project is a milestone for the company with the development of the Dalgaranga gold project fully funded, the focus for the company over the coming months will be on completion of the construction and commissioning of Dalgaranga in order to achieve first gold production late in the second quarter of 2018, and the ramp up of exploration activities on the company’s extensive tenement holding, which is being funded from the recently completed capital raising.”
The Dalgaranga feasibility study was completed and announced on November 25 2016. The project has an initial mine life of six years, producing an average of around 100,000 oz/y at an average life of mine all-in sustaining costs of approximately A$1,000/oz. In addition, as demonstrated by Gascoyne since completion of the study, there is very significant potential to extend mine life through near mine discoveries such as the recent Sly Fox discovery which is yet to be reflected in an updated Ore Reserves or mine plan.