Two of the world’s major lending agencies have agreed to help finance the San Cristobal silver-zinc project of
The agencies are International Finance Corp. (IFC) and Corporacion Andina de Fomenta (CAF). The former is a division of the World Bank; the latter, a multilateral institution comprising the governments of Chile and Brazil and 22 banks, whose mandate is to support development projects in the Andean region.
The IFC and CAF will work with Barclays Capital and Deutsche Bank Securities to devise financing options for San Cristobal.
Capital costs for an open-pit operations are pegged at US$413 million.
In April, consultant SNC-Lavalin completed basic engineering on San Cristobal, confirming the project’s capital and operating costs as projected in the September 1999 feasibility study.
San Cristobal is one of the world’s largest silver-zinc deposits, with proven and probable reserves of 240 million tonnes grading 62 grams silver per tonne and 1.67% zinc (plus 0.58% lead), equivalent to 470 million oz. silver and 8.8 billion lbs. zinc.
In the first five years of production, the mine is expected to produce 24 million oz. silver and 560 million lbs. zinc annually. Cash costs over the 17-year mine life should average US$1.86 per oz. silver and US28 per lb. zinc. The project has an after-tax return of 20%.
Apex posted a loss of US$753,000 (or 2 per share) for the first quarter of 2000, compared with a loss of US$2.4 million (9 per share) in the corresponding period of 1999.
The Denver-based company ended the recent quarter with working capital of US$89 million and US$89.7 million in cash and equivalents.
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