New Found Gold Corp V.NFG

RE:RE:RE:RE:RE:Cost to complete recommendations in Revised tech report

[AlwaysLong683]

megacopper wrote:

AlwaysLong683 wrote:.....I don't believe junior gold explorers can tap the debt markets for an extended term until they decide to build a mine and lay out a plan for potential creditors on the specifics of the build and its completion, so if NFG just plans to keep drilling and assaying, I think equity financing will likely be their only choice for an injection of funds.


Using Marathon Gold as a model for a possible similar credit facility you can read the key facility terms below as to what NFG will need to do to secure funding.

Marathon Gold Closes US$185M Credit Facility for the Valentine Gold Project

TORONTO, March 31, 2022 (GLOBE NEWSWIRE) -

"..The proceeds of the Facility are to be used for the construction, development and working capital requirements of Marathon’s Valentine Gold Project...."

....Senior secured term loan facility of US$185 million maturing on June 30, 2028 (the “Maturity Date”), with a 6-month extension option available.....

...The Facility is to be repaid in ten quarterly principal repayments equal to 5.0% of the outstanding balance commencing on December 31, 2025, with the remaining 50% due at the Maturity Date (June 30, 2028)...."

MOZ is in the process of building a mine ("Valentine Gold Project") with a first pour target being the end of 2024. The lender is likely giving MOZ a one-year grace period in case the first pour is delayed. MOZ is almost at the end of the permitting stage (a long and drawn-out process that has taken quite some time to get final approval from both the Newfoundland and Canadian governments), so for NFG to do as MOZ did, they would first have to commit to building a mine, move forward with the permtting process, and present a plan to creditors that is found to be acceptable (as stated in my previous post). I highly doubt any lender will provide a large loan or credit facility when an explorer is still in the exploration / drilling / assaying stage.