Nevsun Resources’ Bisha Project Receives All Credit Approvals For Debt Facilities Of $235 Mln Jul 14th, 2009 •
(RTTNews) - Nevsun Resources Ltd. (NSU,NSU.TO: News ) said that its Bisha Project in Eritrea has received all required credit approvals from the project finance lenders for debt facilities totaling $235 million. The mine is expected to start producing gold in the third quarter of 2010.
The company added that documentation of the facilities has been progressing in parallel and financial close is expected shortly.
The debt package is a mix of senior and subordinated loans from a lending group comprised of seven institutions from Europe and South Africa. The arrangements include an available cost over-run facility of US$30 million that will be in addition to a contingency allowance of US$32 million in the budget.
The project is now more than one third completed, and the forecast cost to complete remains on budget.
At recent metal prices, the project is expected to generate enough cash in the first two and a half years to repay all debt facilities, as well as fund the copper phase mine expansion during the same period. The projected operating cash costs for gold production are estimated to be less than $230/oz, including royalties.
Nevsun Resources’ Bisha Project Receives All Credit Approvals For Debt Facilities Of $235 Mln Jul 14th, 2009 •
(RTTNews) - Nevsun Resources Ltd. (NSU,NSU.TO: News ) said that its Bisha Project in Eritrea has received all required credit approvals from the project finance lenders for debt facilities totaling $235 million. The mine is expected to start producing gold in the third quarter of 2010.
The company added that documentation of the facilities has been progressing in parallel and financial close is expected shortly.
The debt package is a mix of senior and subordinated loans from a lending group comprised of seven institutions from Europe and South Africa. The arrangements include an available cost over-run facility of US$30 million that will be in addition to a contingency allowance of US$32 million in the budget.
The project is now more than one third completed, and the forecast cost to complete remains on budget.
At recent metal prices, the project is expected to generate enough cash in the first two and a half years to repay all debt facilities, as well as fund the copper phase mine expansion during the same period. The projected operating cash costs for gold production are estimated to be less than $230/oz, including royalties.
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