Capricorn Metals has secured a $107 million funding package that will be used to advance development of the Karlawinda gold project in the Pilbara, Western Australia.
The company has received a letter of offer from Macquarie Bank for the project financing facilities, which include an $81 million senior project finance facility, a $19 million bank guarantee facility and a $7 million working capital facility.
Capricorn expects the finance package will fund the majority of the construction costs at Karlawinda.
Debra Bakker, Capricorn non-executive chair, said the agreement was a major step forward in the development of Karlawinda.
“The Macquarie Bank funding package reflects the quality of the project and the significant work undertaken by the Capricorn team over the last 12 months following completion of the feasibility study in October 2017 and optimisation study in June 2018,” Bakker said.
“This outstanding result removes a significant impediment to the development of the project and we can now push ahead to become Australia’s newest gold producer.”
Capricorn expects to produce an average of almost 97,000 ounces a year at Karlawinda over an 8.5-year mine life. It expects to reach production at the site in the June quarter of 2019.
SMS Mining Services has been named as the preferred mining contractor for the operation.