Canadian gold mining firm Torex Gold Resources has raised a $375m loan from a group of banks through its subsidiary Minera Media Luna in order to develop its El Limon-Guajes project in Mexico.
Minera has raised the loan from BMO Harris Bank, BNP Paribas, Commonwealth Bank of Australia, ING Bank, Société Générale and The Bank of Nova Scotia.
Torex president and CEO Fred Stanford said: “With this project financing, we are now in a position to complete the construction of our first mine on schedule and on budget, for commissioning in August of next year.
“Our special thanks to our shareholders for their patience and support during the almost two years it took us to complete this financing that puts us on a path to building a company we can all be proud to be a part of.”
The loan includes a project finance facility of $300m with an interest rate of LIBOR +4.25% to 4.75% and a cost overrun facility of $75m, having the same interest rate with an additional maximum of 3%.
In June, Torex announced the completion of its in-fill drilling programme covering the near-surface portion of the El Limon Sur area at its El Limon-Guajes gold project.
The company previously said that it was planning to produce 38,000oz of gold from its El Limon-Guajes project in 2015.
El Limon-Guajes is located on the company’s 100%-owned Morelos Gold property in Mexico.
In addition to the El Limon-Guajes project, Torex also operates the Media Luna project, which is in the advanced stages of exploration.