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Ramelius draws down funding for Mt Magnet

13th December 2013

By: Esmarie Iannucci

Creamer Media Senior Deputy Editor: Australasia

  

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JOHANNESBURG (miningweekly.com) – Gold miner Ramelius Resources has drawn-down the full A$16-million from a pre-pay facility with Deutsche Bank Australia to ramp up production at the Mount Magnet mine, in Western Australia.

Under the terms of the facility, Ramelius has purchased put options over 7 500 oz/m of gold at a strike price of A$1 200/oz for the period from April to August next year.

The facility has been secured against the Mount Magnet assets and would be fully repaid through the delivery of 1 492 oz/m of gold from January to August.

Ramelius told shareholders on Friday that the facility would enable the company to fast-track the acquisition and potential re-mining work at the Vivien gold project, in Western Australia, and provided flexibility to take advantage of potential opportunities to expand the Mount Magnet project through acquisitions and developments of new satellite openpits.

Ramelius recently devised a plan to resolve a wall slip at its Western South Queen openpit mine, in Western Australia, which resulted in the miner suspending operations last week.

The slip occurred beneath the ramp on the western side of the pit.

Edited by Creamer Media Reporter

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