Empire Resources has secured $7.5 million in funding for its Penny’s Find gold mine in Western Australia’s Eastern Goldfields, set to take the mine into full production.
The company signed a binding Term Sheet agreement with Blue Capital Services to fund mining costs to a maximum of $7.5 million, until the mining operations are cash flow positive.
The open pit mine is located 50km northeast of Kalgoorlie and has gold resources of approximately 146,000 tonnes grading 4.62grams per tonne gold for 21,7000 contained ounces.
The funds will also help with onsite infrastructure establishment costs as mining begins later in March.
Full scale operations are set for April.
Empire Resources managing director David Sargeant said the funds provide suitable working capital for initial mining at Penny’s Find.
“All agreements for mining, haulage and treatment of Penny’s Find gold ore are now satisfactorily in place, allowing the project to make the immediate transition to mining,” he said.
“A recently re-designed pit and new mining schedule will also allow Empire to mine at a faster rate than previously anticipated, with considerable cost savings.”
Orionstone will provide equipment and services for the mining operations. It comes after Empire awarded an ore haulage contract to Kalgoorlie’s Hamption Transport Services and awarded Golden Mile Milling an ore processing agreement.
The company is working to later take the mine underground as its mineralisation extends around 250m deep.