Partners secure Refugio financing

Banks have agreed to finance the Refugio gold project in northern Chile.

Chilean approval for the drawdown of a US$85-million gold loan is expected before the new year.

The capital cost is estimated at US$127 million, and construction is already under way on the open-pit, heap-leach operation. Partners Bema Gold (TSE) and Amax Gold (NYSE) each will contribute US$21 million to cover the balance of the costs.

Minable reserves are estimated at 112 million tons averaging 0.03 oz. gold per ton, with a stripping ratio of 1-to-1. Gold production is anticipated for early 1996 at an annual output of 233,000 oz. over a 9.5-year life.