Calidus Resources is set to launch full development of its Warrawoona gold operation in Western Australia after securing a $110 million loan.
The loan is secured with Macquarie Bank following a global tender and due diligence process on Calidus and the Warrawoona project.
Calidus managing director Dave Reeves said access road, water boards and telecommunications have all been completed at Warrawoona.
The village install is also progressing on time and budget.
Calidus plans to conclude all major contracts and final operating permits in the coming quarter, as it heads for plant construction.
“This is a significant milestone for the project and the company and allows the company to commit to full development in the coming quarter,” Reeves said.
“Macquarie (has) conducted extensive due diligence on Warrawoona and their agreement to provide the facility is a strong vote of confidence in the project and Calidus, and we look forward to working with the team at Macquarie on completing all documentation and conditions precedent to drawdown.”
Loan repayments will start in June 2022 and are able to be repaid early at any time.
Calidus will hedge around 105,000 ounces of gold, or 25 per cent of the forecast production at Warrawoona over the course of the loan facility.
The Warrawoona project has a probable ore reserve of 8.9 million tonnes at 1.5 grams per tonne for 418,000 ounces.
It is located in the East Pilbara district of the Pilbara Goldfield.