EnviroGold Ltd has mandated Standard Bank Plc to provide a US$23 million ($25.8 million) term loan facility and a US$2 million ($2.2 million) cost overrun facility for the company's 70 per cent owned Las Lagunas Gold Project in the Dominican Republic.
Provision of the facilities is subject to an agreement of loan documentation, satisfaction of conditions precedent, and the Bank's internal approvals.
It is anticipated drawdown will commence in April 2008 comfortably meeting the construction schedule for the project.
EnviroGold executive chairman Brian Johnson said that he was particularly pleased that EnviroGold would develop a relationship with Standard Bank which had extensive experience in the resources sector and was active in Latin America and China where the company was progressing future projects.
EnviroGold will commence site works at Las Lagunas next month and has already ordered long lead equipment items to ensure construction completion by February 2009.
The project is expected to produce 435,000 ounces of gold and 3.97 million ounces of silver currently valued at approximately US$470 million ($529 million), over its 6.5 year life.
Negotiations are progressing to extend the life of the project through EnviroGold's direct participation in the mining of refractory ore bodies in close proximity to Las Lagunas which are held by third parties.
