RE:Over Budget A little financing... and a month ahead...
project is derisking rapidly now. a few months and we will speak about production instead of construction
https://www.vitgoldcorp.com/news/victoria-gold-eagle-mine-construction-update-dublin-gulch-yukon/
Schedule to First Gold Pour
The original schedule had the first ore delivery to the heap leach pad in August 2019. The Company is confident the team can beat this schedule by one month, with first ore reporting to the heap leach pad in July 2019. This results in a first gold pour target of September 2019. With the acceleration of the construction schedule, over 3 million metric tonnes of ore are expected to be delivered to the heap leach pad by year end 2019.
Cost to Complete
Construction capital has increased by approximately 10% from $442M to $487M. The majority of this increase was due to additional earthworks as the result of unexpected geotechnical conditions. Other cost increases were largely related to schedule preservation and acceleration.
All bulk earthworks, major equipment purchases and major contracts are now complete or awarded. Approximately $364M has been incurred while $408M has been committed and C$8M remains in contingency. No further cost increases are anticipated.
Financing
After consideration of $20M overfunding which was previously completed, a further $25M is required to complete construction. The Company is working with its funding partners to ensure the mine is fully financed through construction and to positive cash flow.
As part of the funding requirement, Victoria intends to complete a non-brokered flow-through financing. The Offering will include Canadian development expenses (“CDE”) Flow-Through Shares. The gross proceeds, up to $15M, will be used to incur CDE qualifying expenditures for purposes of the Income Tax Act (Canada). All securities issued under the Offering will be subject to a four month hold period. The Offering is subject to the approval of the TSX Venture Exchange.
The Company has 40,000,000 common stock warrants with an exercise price of $0.40 per share expiring on May 10, 2019. Should all warrants be exercised, the Company would receive proceeds of $16M