Holmer Gold raises US$6m

Toronto-based junior Holmer Gold Mines (HGM-V) has closed a US$6-million debt financing with TCC Ventures, a U.S.-based venture capital firm.

Following due diligence, Holmer will also issue 1 million share-purchase warrants to TCC, with each warrant entitling the holder to buy one Holmer share for 30 over one year and for 35 over the following year.

Proceeds are earmarked for development of Holmer’s 50%-owned Loma Hierro silver mine in Cuba and its gold project in Timmins, Ont.

At Loma Hierra, Holmer recently signed a joint-venture operating agreement with its Cuban government partner, GeoMinera. It also commissioned an update on a feasibility study conducted by Rescan-Hatch that confirmed the economic viability of the project at current silver prices, based on revised and lowered capital and operating costs.

Holmer intends to repay the loan within five years from the cash flow generated from the operations. The loan bears interest at 8% per year, and Holmer paid a one-time closing fee of 6%.