Bermuda based Osborne & Chappel Goldfields, the shares of which are listed on the tse, has obtained a major financial participation from the International Finance Corp. (an affiliate of the World Bank) for its big gold dredging project in Ecuador.
Total capital cost of the undertaking, estimated at $55 million(US), involves the installation of two large dredges on mineral concessions holding calculated potential reserves of 2.3 million oz of gold.
The ifc investment will total $17.4 million in equity and up to $13 million in long-term debt of which $9 million would be for ifc’s own account and up to $4 million syndicated.
“Approval of this agency of the World Bank is a key step in carrying forward what will be the largest gold development yet undertaken by Osborne & Chappel, a joint venture partner in the project,” says President David Palmer.
Design work for the first high capacity dredge has already been completed. This will have an annual capacity of 6.5 million cu yd.
The decision to proceed with construction of the two big dredges at this time follows the successful commissioning last December of a smaller pilot dredge, the company points out.
Under the agreement with the IFC, a new Ecuadorian company is to be formed in which Osborne & Chappel and its partners in Ecuador will each have a 40% interest, with the IMF holding the remaining 20%.
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