Beadell Resources has announced $US80 million in debt financing to fund the development of the Tucano gold project in Brazil.
Beadell said today it had appointed WestLB and Macquarie Bank to arrange low-cost bank facilities totalling $80 million from Brazil-based Banco da Amazonia.
“The facility will be structured as a limited-recourse project finance loan and includes a modest level of gold hedging totalling 135,000 ounces if minimum average price of $US1,500/oz or down to 115,000 ounces if a minimum price of $US1,600/oz is achieved,” Beadell said in a statement.
Provision of the finance facilities will be subject to due diligence, credit approvals, completion of documentation and conditions precedent.
At close of trade today Beadell’s stock was steady at 86.5 cents.
The debt financing follows a $30 million capital raising Beadell completed latest month for the development of a processing plant and exploration programs at Tucano.
The 85 cents per share placement, managed by Southern Cross Equities and Ord Minnet, was oversubscribed.
Beadell is targeting the first half of next year to begin producing gold from Tucano.
