Toronto-based St Andrew Goldfields (TSE) has raised approximately $22.1 million through a European financing for construction of a 500-ton-per-day mill at its Stock Twp. property near Timmins, Ont.
Under an underwriting agreement with a European Banking consortium headed by Banque Indosuez of Geneva, Switzerland, the company will issue a convertible debenture for 25 million Swiss francs.
The interest rate on the 7-year debenture is 5.75% per year to maturity, St Andrew says. They are convertible into common shares at the holder’s option from Sept 6, until maturity at a price yet to be determined. The agreement is scheduled to close June 6.
The proceeds are sufficient to cover the cost ($16 million) of a milling complex, pre-production and start-up working capital provisions at the Stock Twp. property.
While initial capacity at the mill will be 500 tons per day, it will be designed to increase its capacity to 1,000 tons per day to accommodate production from new gold deposits.
St Andrew Goldfields is a 55%- owned subsidiary of Quebec Sturgeon River Mines.
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