Vancouver – Financing for completion and start-up of Aurizon Mines’ (ARZ-T, AZK-X) Casa Berardi gold mine, located in northwestern Quebec’s Abitibi region, is now in hand with an up to $75 million debt facility having been arranged.
French bank BNP Paribas has committed to underwrite a senior debt financing facility for up to $75 million to get the mine into operation.
The funds, in addition to the recently completed $28 million equity financing, provides Aurizon with all necessary funding requirements for Casa Berardi. The debt facility is expected to close in early-2006.
Construction is well underway on the project and initial production is anticipated in late-2006. A recently revised technical report on Casa Berardi reviews a 6-year mine life, producing an average of about 175,000 oz. of gold annually. Total life-of-mine cash costs are estimated at US$219 per oz.
The project has a mineral reserve of 4.1 million tonnes grading 9.2 grams gold per tonne within an indicated resource of 6.8 million tonnes grading 7.6 grams gold. An additional inferred resource of 5.6 million tonnes averaging 6.5 grams gold has also been reviewed.
Shares of Aurizon Mines have recently risen to an almost 11-month high at the $1.60-level. The company has a market capitalization of $220 million based on its 139 million shares outstanding.
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