Jun
18
Edgewater Exploration (CVE:EDW) entered Monday into a $120 million project financing agreement with Credit Suisse AG (NYSE:CS) and Barclays Bank Plc (NYSE:BCS) to develop its Corcoesto gold project, in Galicia Spain.
“This is a major milestone for Edgewater to be able to arrange a substantial portion of the estimated $160 million capital needed for the Corcoesto gold project,” chief executive George Salamis said in a statement.
The mandate letter agreement has preliminary approval of both proposed lenders, while final approval hinges on the completion of due diligence, final credit approval, the execution of a loan agreement and a bankable feasibility study.
Edgewater expects to complete the bankable feasibility study sometime during the fourth-quarter of this year.
“We believe that the bank’s involvement in the financing of Corcoesto, is a testament to the project’s future ability to produce gold at a reasonable cost and return, in addition to the local support for the project demonstrated at the ground level in Galicia, Spain,” said Salamis.
The key terms of the mandate letter are for up to $120 million of senior debt for a term of seven years. The interest rate is LIBOR (London Interbank Offer Rate) based, and loan repayments will be quarterly.
Funding under this facility is subject to customary conditions, including the issuance of a mine permit as well as necessary permits needed for construction, and equity investment by Edgewater.
In late March, the company unveiled diamond drill results from its ongoing in-fill program at Corcoesto. The mineral explorer said it had four diamond drill rigs, which continued to intersect excellent widths and grades of gold mineralization.
Notable results included drill hole DDH12W96, which returned 66.5 metres with a grading of 2.00 grams per tonne (g/t) of gold.
The Corcoesto gold project is located in northwest Spain about 35 kilometres west-southwest of the port city of La Coruna in the Autonomous Community of Galicia.
The mineral explorer is also exploring the Enchi gold project in Ghana, West Africa.
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