Canadian Mining Journal


GOLD: Atlantic Gold signs project loan facility for Moose River

NOVA SCOTIA – Vancouver-based Atlantic Gold Corp. has signed a syndicated project facility loan agreement with Macquarie Bank and Caterpillar Financial Services to fund the majority of the company’s Moose River Consolidated gold project.

The loan carries an interest rate of the Canadian dealer offered rate (CDOR) plus a margin 5%. The margin falls to 4.5% after the project is completed. The loan is repayable over three years. As part of the terms, Atlantic is required to sell forward 215,000 oz of gold (about 30% of the total recovered during the life of the project) at a minimum price of C$1,500 per oz. The company has already hedged 100,000 oz.

The first Moose River deposit to be developed will be Touquoy, about 110 km northeast of Halifax. Atlantic has secured all major environmental permits and mineral leases. The deposit contains measured and indicated resources of 10.1 million tonnes grading 1.5 g/t Au and containing 480,000 oz of gold. There are also 1.6 million inferred tonne at the same grade and containing 77,000 oz.

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