Vancouver-based Galactic Resources (TSE) and partner BP Minerals America have successfully negotiated a $56-million(US) gold loan to finance construction of the Ridgeway gold mine, at Ridgeway, S.C.
Through subsidiaries Triangulum Resources and Ridgeway Mining Co., Galactic and BP share a 48% and 52% interest respectively in the joint venture project.
As reported (N.M., March 21/88), the 15,000-ton-per-day mine located 25 miles northeast of Columbia is expected to produce 158,000 oz gold annually for the first four years before reducing its output to 135,000 oz later on.
Operating costs are expected to be between $1.80 and $2.20 per oz. With a fourth quarter start-up target, construction has been proceeding on schedule with an emphasis on a tailings dam and carbon gold recovery tanks.
Galactic says repayment of the loan has been assured by letters of credit totalling $125 million from a consortium of five financial institutions. The letters of credit will also back certain long forward contracts for the forward sale of gold, Galactic says.
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