Aurizon lines up funds for Casa Berardi

Vancouver — Financing for completion and startup of Aurizon Mines‘ (ARZ-T, AZK-X) Casa Berardi gold mine, located in northwestern Quebec’s Abitibi region, is now in hand, with a loan of up to $75 million in place.

French bank BNP Paribas has committed to underwrite a senior debt financing facility for up to $75 million to put the mine into production.

In combination with a recently completed $28-million equity financing, the loan will provide Aurizon with all necessary funding for Casa Berardi. The latter is expected to close in early 2006.

Construction is well under way 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 175,000 oz. 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 have recently risen to around $1.60, an almost 11-month high. The company has a market capitalization of $220 million based on its 139 million shares outstanding.

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