Surface Mining
Advertisement




Advertisement




Advertisement




Advertisement




Advertisement




Advertisement




Advertisement




Kerr Mines Secures $27.6 Million Financing to Develop Copperstone Gold Mine, Arizona

Published: July 19, 2018 |

[Click image to enlarge]

Kerr Mines has signed a Letter of Intent with Pandion Mine Finance for $27.6m to fund the development and production of gold at the Copperstone Mine located in Western Arizona, along the Walker Lane Belt.

The financing is subject to the execution of a Prepaid Forward Gold Agreement (the “Agreement”), with an anticipated initial tranche of US$19.6 million targeted for August 2018 and a second tranche of US$8 million in July 2019. Pandion anticipates signing a Definitive Agreement in August 2018.

The proceeds of the Agreement will be primarily used to fund the Copperstone Mine into production by Q4 2019.  In addition, the Company will commence the 2018 drilling program designed to convert a significant proportion of Measured, Indicated and Inferred Resource into Proven and Probable that will extend the mine life and cash flows.

“After careful review of the financing options available, we are pleased to select Pandion Mine Finance as our funding partner”, stated Claudio Ciavarella, CEO Kerr Mines Inc. “We believe the terms of this financing are competitive and create value for our shareholders.  It is another key milestone that our team has achieved in just over a year since taking the helm of the Company.  With this funding arrangement now in place, we are highly focused on continuing to create shareholder value and are now able to turn our attention to achieving our next targets – production in 2019, expansion of resources and mine life ” continued Ciavarella.

The highlights of the Agreement are:

US$27.6 million financing in two tranches, US$19.6 million in August 2018 and US$8 million in July 2019

The Company will deliver to Pandion a total of approximately 95,000 ounces over a 40 month period. However, no gold shall be deliverable by the Company during the first 22 months.

Pandion will pay the Company the market price of delivered gold less a specified discount per ounce. In addition, Pandion will participate in a portion of any increase in the price of gold.

All other production from the Copperstone will be sold at the market price.

Additionally, Pandion would have the option to elect at any time to receive common shares of Kerr Mines Inc., at a price of $0.40 per share, in lieu of delivery of up to 10,000 ounces of gold, subject to the prior approval of the TSX.

Kerr will retain the right to buy out and terminate the Agreement at any time

Source: Compelo


To stop by Kerr’s website, CLICK HERE


Be in-the-know when you’re on-the-go!

FREE eNews delivery service to your email twice-weekly. With a focus on lead-driven news, our news service will help you develop new business contacts on an on-going basis.
CLICK HERE to register your email address.

 

Advertisement




Advertisement




Advertisement




Advertisement




Advertisement




Advertisement




Advertisement