Sabina announces initial debt deal for Goose mine
Project developer Sabina Gold & Silver on Monday announced an initial debt agreement for project financing for its Goose mine on its 100%-owned Back River gold project, in Nunavut.
The company has obtained a $20-million senior secured credit facility, which would enable it to fund critical path activities while pursuing full funding initiatives.
According to the Back River feasibility study, the project would require an estimated C$610-million for a mine that would produce 223 000 oz/y over 15 years.
Sabina said it had engaged in discussions with several streaming companies, which after due diligence have submitted stream proposals. The company stated that it was considering a proposal which, if completed, would reduce the equity requirements of project financing.
“All of the work completed and planned so far provides the basis for a more executable project construction period. We look forward to reporting progress on all fronts going forward,” said president and CEO Bruce McLeod.
The $20-million credit facility would be used to fund the construction of a ten-million-litre bulk fuel storage tank and containment at Goose, for procurement and delivery of bulk diesel fuel, for construction of fuel transfer systems at the Goose and port facility, for continued earthworks activities and for preparation of winter-ice-road construction and haulage in 2022.
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