Oracle Mining (OMN-T) has gained some cash, and now it is restarting a copper mine.
The Vancouver-based company announced it closed a deal with Credit Suisse that will see the commercial bank lend the company up to US$70 million.
The new capital will go directly into the Oracle Ridge copper mine, 24 km north of Tucson, Ariz.
Oracle is looking to restart the mine that built a capital cost of between US$80 million and US$100 million in the mid-1990s.
The deal with Credit Suisse comes on the heels of a private placement announced at the end of February, which raised $9.75 million for company coffers. That deal gave Hong Kong-based RichStone Mining a 19.9% stake in Oracle.
The underground Oracle Ridge mine is expected to have a throughput of 2,000 tonnes per day. The site has historic, non-National Instrument 43-101 compliant proven and probable reserves of 7.4 million tonnes grading 2.33% copper for 379 million lbs. copper, and “possible” reserves of 15 million tonnes grading 2.33% copper for 772 million lbs. copper.
Oracle says it will have a compliant resource estimate out by September. It plans to commission the plant during this time, and expects initial production by year-end.
The loan from Credit Suisse is subject to several conditions. Key conditions include completing due diligence and receiving internal credit committee approvals by Credit Suisse.
The company’s shares are up 12% since announcing the financing on March 12, and its shares traded for $1.40 at presstime. The company has 34.1 million shares on a fully diluted basis. Directors and officers hold 25.7% of the company’s equity.
Be the first to comment on "Oracle ready for restart"