Financing near for Castle Mt.

Financing for the construction of the Castle Mountain heap leach gold mine in San Bernardino Cty., Calif., is near at hand for Viceroy Resources (TSE). The company secured a credit facility with N.M. Rothschild & Sons for up to US$35 million. Full terms of the facility have not been released although Ross Fitzpatrick, president of Viceroy, said the terms were favorable and included an option to convert to a gold loan at any time during the mine’s construction period.

Viceroy also filed preliminary prospectuses with the Ontario, Alberta and British Columbia securities commissions for a common share issue.

Fitzpatrick said the issue has not been priced yet, but will total a minimum of US$15 million, which should cover the balance of the US$50 million capital cost of the project.

The share issue is expected to be completed in February with construction scheduled to finish before year-end.