A consortium of banks led by the Bank of America Canada has agreed to provide the loan as long as Neptune can transport enough equipment to the project site to keep construction on schedule.
“As soon as we satisfy that condition, we can make the first draw down,” said a Neptune spokesman
Combined with guarantees and funds previously advanced by Northgate Exploration (TSE) of Toronto and Spokane, Wash.-based Gold Reserve Corp., the loan is expected to ensure a March 1990 start up at the 10,000-ton-per-day operation. Planned production rate is 200,000 oz gold annually.
Northgate recently emerged as Neptune’s financial backer with a $37.5-million facility, while Gold Reserve provided $15 million in equity financing last July.
Because Neptune is transporting its equipment across frozen lakes, the company must revert to air transportation when the lakes begin to thaw out in about three weeks.
“It is expected that the majority of the necessary equipment will move up the winter road and any equipment that does not make it because of spring thaw will be shipped by air or by road in 1990,” Neptune said.
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