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[h=1]Royal Gold to Invest USD 175 Million in Ilovica[/h]
October 21, 2014, Tuesday @ 21:30 in Business » INDUSTRY | Views: 58
Copper and gold mine should become operational in 2017, while the total investment for the implementation of the Green-Field investment is USD 500 million. Photo: MIA
Canadian company Euromax provided USD 175 million for additional funding of the next phase of development and construction at Ilovica copper and gold mine in Republic of Macedonia.
It has entered into a gold streaming agreement with RGLD Gold AG, a wholly-owned subsidiary of US company Royal Gold.
Subject to conditions precedent, including the execution of requisite security documentation, advances under the Streaming Agreement will be available in three principal tranches. The first two tranches of USD 7,5 million of the Streaming Agreement are to be used to further the development of the Project in respect of Project permitting and the completion of a definitive feasibility study ("DFS") and front end engineering and design ("FEED") planned for 2016.
The third tranche of USD 160 million is to be used, pro-rata with other sources of finance, to fund all capital expenditures at the Project.
"Under the Streaming Agreement, the Euromax group will deliver gold in an amount equal to 25% of payable gold produced from the Project until 525,000 ounces have been delivered to Royal Gold, and 12.5% thereafter for life of mine.
Royal Gold will purchase the gold delivered at a cash purchase price of 25% of the London PM gold fixing price as quoted by the London Bullion Market Association on the date of delivery for each ounce delivered and shall apply the balance as a reduction against the USD 175 million advance payment. No interest shall be payable on the advance payments", Euromax CFO Varshan Gokool said.
Receipt of installments of the third tranche pro-rata with other sources of financing will be subject to the satisfaction of a number of conditions, including Royal Gold being satisfied with the final results of the DFS and the environmental and social impact assessment, that all necessary permits and approvals for construction have been received and that the Euromax group has access to sufficient financing to fund all construction costs and, to the extent funded by way of a credit facility, that all material conditions precedent to a drawdown under the said credit facility have been satisfied.
Euromax pre-feasibility study has calculated Ilovitza’s first-ever reserve, with the deposit hosting 209 million probable tonnes in sulphides that grade 0.34 gram gold per tonne and 0.2% copper for 2.3 million contained oz. gold and 905 million contained lb. copper. Oxides reserves tack on 16.2 million probable tonnes at 0.33 gram gold for 172,000 contained oz. Measured and indicated sulphide resources total 237 million tonnes of 0.33 gram gold and 0.22% copper, while oxides add 36 million tonnes of 0.33 gram gold.
Euromax owns two concessions - one for exploitation and one for detailed geological surveys of other neighboring location. Copper and gold mine should become operational in 2017, while the total investment for the implementation of the Green-Field investment is USD 500 million.
Euromax is a Canadian exploration services and mine development company, with gold and base metal assets in Macedonia and Serbia and an exploration services company in Bulgaria. The company is focused on developing mineral resources in Southeastern Europe, with the objective of becoming a world-class mining company there.
- See more at: Royal Gold to Invest USD 175 Million in Ilovica - Independent.mk
Canadian company Euromax provided USD 175 million for additional funding of the next phase of development and construction at Ilovica copper and gold mine in Republic of Macedonia.
It has entered into a gold streaming agreement with RGLD Gold AG, a wholly-owned subsidiary of US company Royal Gold.
Subject to conditions precedent, including the execution of requisite security documentation, advances under the Streaming Agreement will be available in three principal tranches. The first two tranches of USD 7,5 million of the Streaming Agreement are to be used to further the development of the Project in respect of Project permitting and the completion of a definitive feasibility study ("DFS") and front end engineering and design ("FEED") planned for 2016.
The third tranche of USD 160 million is to be used, pro-rata with other sources of finance, to fund all capital expenditures at the Project.
"Under the Streaming Agreement, the Euromax group will deliver gold in an amount equal to 25% of payable gold produced from the Project until 525,000 ounces have been delivered to Royal Gold, and 12.5% thereafter for life of mine.
Royal Gold will purchase the gold delivered at a cash purchase price of 25% of the London PM gold fixing price as quoted by the London Bullion Market Association on the date of delivery for each ounce delivered and shall apply the balance as a reduction against the USD 175 million advance payment. No interest shall be payable on the advance payments", Euromax CFO Varshan Gokool said.
Receipt of installments of the third tranche pro-rata with other sources of financing will be subject to the satisfaction of a number of conditions, including Royal Gold being satisfied with the final results of the DFS and the environmental and social impact assessment, that all necessary permits and approvals for construction have been received and that the Euromax group has access to sufficient financing to fund all construction costs and, to the extent funded by way of a credit facility, that all material conditions precedent to a drawdown under the said credit facility have been satisfied.
Euromax pre-feasibility study has calculated Ilovitza’s first-ever reserve, with the deposit hosting 209 million probable tonnes in sulphides that grade 0.34 gram gold per tonne and 0.2% copper for 2.3 million contained oz. gold and 905 million contained lb. copper. Oxides reserves tack on 16.2 million probable tonnes at 0.33 gram gold for 172,000 contained oz. Measured and indicated sulphide resources total 237 million tonnes of 0.33 gram gold and 0.22% copper, while oxides add 36 million tonnes of 0.33 gram gold.
Euromax owns two concessions - one for exploitation and one for detailed geological surveys of other neighboring location. Copper and gold mine should become operational in 2017, while the total investment for the implementation of the Green-Field investment is USD 500 million.
Euromax is a Canadian exploration services and mine development company, with gold and base metal assets in Macedonia and Serbia and an exploration services company in Bulgaria. The company is focused on developing mineral resources in Southeastern Europe, with the objective of becoming a world-class mining company there.
- See more at: Royal Gold to Invest USD 175 Million in Ilovica - Independent.mk
