Financing for the Nixon Fork gold project in west-central Alaska is close at hand. Consolidated Nevada Goldfields (NASDAQ) plans to offer a private placement of up to $25 million in convertible debentures.
Finance house IBK Capital will act as agent to help the company complete the placement.
The 3-year debentures carry an interest rate of 3% and are convertible into common stock at $1.75 per share.
The junior has commitments for $10.7 million of the debentures and has received expressions of interest for a further $10.5 million. A positive feasibility study on the underground project, performed late last year, recommended a production rate of 150 tons per day.
Minable reserves in two zones are estimated at 94,100 tons grading 1.42 oz. gold per ton and annual production is estimated at 60,000 oz. at a cash cost of US$147 per oz.
The capital cost of developing Nixon Fork is estimated at US$15.5 million. Underground exploration and development is planned for the spring.
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