Metals X signs $40m gold pre-pay deal

West Perth-based miner Metals X has completed a $40.4 million pre-pay arrangement with Citibank for the production of over 30,000 ounces of gold.

Under the terms of the deal, Metals X has agreed to deliver 1,250 ounces of gold per month for 24 months, in exchange for the cash advance.

Metals X said it had cash and working capital of $90.8 million at the end of August.

It said the funds would be used to continue the expansion of its gold division.

The miner reported a 332 per cent full-year profit increase to $37.4 million in August, on the back of an increase in revenue from gold sales which was mined from its Higginsville and South Kalgoorlie operations, which it acquired from Alacer Gold Corp in October last year.

It had recently snatched up Reed Resources’ Meekatharra gold project for $9.9 million in June, raising its bid from $7.7 million after the company’s administrators announced a surprise competing bid had been lodged, just before a creditors’ meeting was scheduled to discuss agreeing to the purchase.

Metals X's share price remained unchanged at 23.5 cents per share at 2pm.