Millennium Minerals has secured a $17.5 million loan facility with Investec to fund an expansion of the company’s Nullagine gold project in the Pilbara.
The funding will allow for an expansion of the existing 2 million tonnes per annum processing plant at the project.
The company is aiming to begin commissioning for the expanded plant in the first quarter of 2019.
The revolving loan facility will have an initial tenor of 15 months, with scheduled repayments to commence 12 months after first availability.
Millennium will undertake a hedging program of at least 25,000 ounces over a rolling 12-month period from the date of first draw-down under the facility.
Millennium chief executive Peter Cash said the company was delighted to have secured the support of Investec.
“Investec has financed numerous high-profile and successful Australian gold projects and gold companies,” he said
“Having them involved as we take this next critical step in our development represents a big vote of confidence in the future both of Millennium and the Nullagine project.
“The relatively modest direct capital cost of the expansion – just $15 million – means that we can carefully manage and control our funding requirements over the next 6-9 months, ensuring that we can deliver this critical expansion program on time while continuing to grow our resource and reserve inventory.”
Shares in Millennium finished flat at 18 cents each today.