26/06/2019 - 14:10

Emerald secures up to $US160m in funding

26/06/2019 - 14:10

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Emerald Resources has secured a total of $US160 million in finance facilities to fund project development and future acquisitions.

Emerald secures up to $US160m in funding
Emerald's flagship Okvau gold project is located in Cambodia.

Emerald Resources has secured a total of $US160 million in finance facilities to fund project development and future acquisitions.

West Perth-based Emerald entered into a term sheet with Canadian investment firm Sprott, to provide a $US60 million facility to be utilised towards the financing of its Okvau gold project in Cambodia.

In May 2017, Emerald completed of the definitive feasibility study on the development of a 2 million tonnes per annum operation at Okvau.

Sprott has also offered Emerald access to an additional facility of up to $US100 million to fund future project development and acquisition opportunities identified by Emerald and agreed with Sprott.

Emerald currently has market cap of around $120 million.

Emerald managing director Morgan Hart said the company worked diligently to get the best debt terms for shareholders in a challenging market, culminating in the signing of the term sheet for the Okvau facility.

“The offer by Sprott to finance Emerald in the development of the Okvau gold project follows a thorough technical due diligence process which demonstrates the robust nature of the project and supports the company’s strategy of becoming the first modern large-scale Cambodian gold producer,” he said.

Shares in Emerald were up 5 per cent at 3pm AEST to trade at 4.2 cents each.

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