KBL secures A$10m loan facility
PERTH (miningweekly.com) – ASX-listed KBL Mining has secured A$10-million in funding from private investor Capri Trading to fund capital and operating initiatives at its Mineral Hill mine, in New South Wales.
KBL told shareholders on Thursday that the loan funds would enable the completion of the underground development of the Red Terror orebodies, the establishment of stoping blocks for higher-grade copper/gold ore, the start of construction of the gold plant, funding of the initial stripping of the opencut for the Pearse gold/silver project, and the repayment of the remaining principal and interest under a A$3-million bridge loan facility established at the end of last year.
The construction of a gold plant would enable higher recoveries of gold from underground copper/gold ore, as well as the production of gold/silver dore from the Pearse openpit mine.
Mining over the next three months would be focused on the Red Terror lodes, which have continued to show superior copper and gold recoveries, KBL said.
Under the terms of the loan agreement no interest repayments would be required during the two-year term, and the repayment amount would be A$11.3-million, if repaid before the first anniversary of the loan, and A$12.6-million if it is repaid before the second anniversary of the loan.
The lender would also be issued with 44-million options, exercisable at 11c each.
KBL expected the loan drawdown to take place in March this year.
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