The financing is in the form of a loan which will be repaid back from production revenues over a 6-year period. Meridian has also loaned Canyon $1.75 million for a 3-year term for corporate purposes. Both loans are non-recourse and are secured by Canyon’s interest in the property. Meridian is the project operator and owns a 71% in the property. Canyon has 15% and other partners 14%.
Canyon and Meridian plan to conduct additional reserve definition drilling in addition to metallurgical and engineering studies. Both partners hope to make a production decision sometime in 1989.
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