NOVA SCOTIA – Vancouver-based Atlantic Gold Corp
. is a step closer to development of its Moose River Consolidated gold project near Halifax thanks to a C$115 million debt financing underwritten by Macquarie Bank and Caterpillar Financial Services.
The project loan has an interest rate of the Canadian dealer offered rate plus a margin 5% before the project is complete. The margin falls to 4.5% post completion, and is repayable in quarterly installments over three years beginning in late 2017. Atlantic has also agreed to hedge 215,000 oz (about 30% of the output over the life of mine) at a minimum price of C$1,500 per oz.
Cat Financial has committed $20 million in mining fleet equipment financing for the project. The equipment will be supplied by Atlantic Tractors & Equipment, the authorized Cat dealer for Nova Scotia.
The Moose River Consolidated project includes the Touquoy and Beaver Dam deposits to be mined using open pit techniques. The project has total proven and probable reserves of 16.45 million tonnes at 1.44 g/t Au using a cut-off grade of 0.4 g/t. There are an estimated 760,000 oz of recoverable gold in the reserves. Preproduction capital requirements, including contingency, are estimated at $160.1 million. All-in sustaining costs are to be C$690 per oz of gold.
Additional details about the project are available at www.AtlanticGoldCorporation.com.