PERTH (miningweekly.com) – Metals developer Sumatra Copper & Gold has been awarded the final forestry permit for its Tembang gold/silver project, in Indonesia, clearing the way for construction to start.
The company said on Friday that the award of the final forestry permit marked the completion of a rapid and highly successful approvals and permitting process, and put Sumatra on track to start gold production next year.
“This is an outstanding outcome for Sumatra, with the Tembang project moving from exploration phase to being fully permitted for development within just 15 months; a fantastic outcome for shareholders,” said MD Julian Ford.
“With all the necessary approvals now in place, and our funding package secured, we are very much looking forward to getting construction and development under way, and moving the Tembang project into production in 2014.”
In February this year, Sumatra secured A$63-million in debt and equity funding from cornerstone investor Provident Capital Partners to develop the Tembang project. The company also said that it would undertake a pro-rata nonrenounceable entitlement offer to raise a further A$20-million, with a further A$35-million in project funding secured from Credit Suisse.
The equity funding package would allow Sumatra to finance and develop Stage 1 of the Tembang project, which requires a preproduction capital investment of $40-million. Stage 1 would deliver some 30 000 oz/y of gold and 200 000 oz/y of silver.
Stage 1 production would start in 2014.
Stage 2 production, which would start in 2015, would see production expand to 50 000 oz/y of gold and 500 000 oz/y of silver.