Calidus Resources has executed its final project loan facility agreements for $110 million, enabling the company to fund civil works at the Warrawoona gold project in Western Australia.
Since finalising loan terms with Macquarie Bank last November, Calidus has also worked on executing a power purchase agreement (PPA) with Zenith Energy, which was completed this month.
Calidus managing director Dave Reeves said things were falling into place perfectly at the Pilbara project.
“We are very pleased to have executed final debt financing agreements with Macquarie. The timing of which coincides with GR Engineering mobilising to site to begin civil works at Warrawoona and the execution of the PPA with Zenith Energy,” Reeves said.
“Calidus is fully funded and focused on successfully developing the Warrawoona gold project and becoming a leading independent gold producer, with first production on schedule for early 2022.”
Under the PPA, Zenith will provide eight megawatts of power to the gold project, through a high efficiency LNG fuelled reciprocating generation facility. An eight megawatt backup diesel generation facility has also been installed.
The PPA announcement comes just a week after the energy company was awarded a gas and solar power supply contract by Red 5 at the King of the Hills gold mine in Western Australia.
On the 10-year contract, Red 5 managing director mark Williams detailed how important an energy supplier like Zenith can be.
“Zenith’s combination of a gas and solar power station, supported by a battery energy storage system, provides the efficiency and stability required for the processing plant and infrastructure to enable King of the Hills to be a long-life, low-cost gold producer,” Williams said.