Doray Minerals shares have risen after the gold miner announced it had finalised a $55 million funding arrangement for its Andy Well gold mine in the Murchison region.
Doray announced today that it had reached agreement with the Commonwealth Bank of Australia for the financing package, which will fund development at Andy Well, including a 126-person construction camp to be built at Meekatharra.
Managing director Allan Kelly said the facility required no mandatory hedging by CBA and had typical draw-down and project completion requirements.
The arrangement also includes a $2 million performance guarantee facility.
Mr Kelly said the company expected to pay off its debts within the first 14 months of production at Andy Well.
"We are very pleased that the Commonwealth Bank of Australia has agreed to provide this facility and look forward to working with them as we progress the project towards first gold production over the next 12 months," Mr Kelly said.
"Obtaining this facility is obviously a major milestone for the project and, importantly, our schedule remains on track for commencement of mining of the high grade stage 1 open pit in the next quarter, pending receipt of all remaining approvals."
At 1:30PM, Doray's stock was up 11.4 per cent, trading at 78 cents.