A US$7.5-million line of credit has been arranged by Manhattan Minerals (TSE), to be used primarily for developing the Moris heap-leach gold mine in Mexico’s Chihuahua state.
Up to US$5 million will be used to fund the development and capital cost requirements for the wholly owned mine. Moris has proven and probable minable reserves of 4.8 million tons averaging 0.062 oz. gold and 0.29 oz. silver per ton. A bankable feasibility study, completed late last year, states the mine will have an 8-year life and produce 222,300 oz. gold and 706,700 oz. silver. When development is complete, the additional US$2.5 million will be used to explore for and possibly acquire additional gold properties. The line of credit is in the form of an amortizing project loan facility and was arranged with N.M. Rothschild & Sons. The loan facility is subject to final documentation and standard project financing conditions. The drawdown of the loan facility may be done in U.S. dollars, gold, silver or any combination at the discretion of Manhattan.
The loan facility may be repaid in whole or in part at any time, without penalty, prior to its expiry on Dec. 31, 1999.
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