Minera IRL Ltd. (
TSX: T.IRL,
Stock Forum) offered an update Monday on financing negotiations for the Ollachea Gold Mine in Peru and existing finance facility with Macquarie Bank.
Minera IRL is a development and exploration company with operations in Latin America. In Peru, the company operates the Corihuarmi Gold Mine and the advanced Ollachea Gold Project. The company also has a 51% interest a gold-silver development project in Argentina called the Don Nicolas joint venture.
Following extensive technical due diligence and in accordance with a debt financing mandate, the company has received a committed letter of offer from Macquarie Bank of a senior Project Loan Facility of $100 million,
it said in a press release.
Following the consolidation of the existing $30 million Macquarie Finance Facility, this would provide $70 million of new funds towards the construction of Ollachea Gold Mine.
According to a feasibility study, the initial capital cost to build the Ollachea Project is $164.7 million, including a 12% contingency. The company will also need to fund an additional $12 million of working capital for IGV (General Sales Tax) for a total pre-production capital of approximately $177 million.
The feasibility study as demonstrated the existence of one million ounces of gold reserves in the Minapampa Zone. That does not include an additional 1.3 million ounces of inferred resources, the company has said.
Meanwhile, the company continues to advance discussions with various parties to obtain the balance of the funding required.
Minera IRL shares ease 2.4% to 20.5 cents on Monday, leaving a market cap of $46.9 million, based on 228.9 million shares outstanding. The 52-week range is 32.5 cents and 13 cents.