Subject to regulatory approval, Yorkton Securities has agreed to complete a brokered private placement of up to $9 million in convertible debentures for Bema Gold (TSE).
The debentures pay 8% and are convertible at any time up to Nov. 30, 1993, into one share and one share purchase warrant at $1.75 per unit in the first year and $2 per unit in second and third years. The warrant is exercisable at $2 to Nov. 30, 1993.
Bema is in the process of arranging US$130 million in financing for its 50% owned Refugio project in Chile.
The company recently announced that equipment maker Caterpillar will supply up to US$24.6 million in mining equipment for the project on a 100% credit basis.
A further US$75 million of the capital cost is being arranged through a gold loan. Sharps Pixely has committed to fund 20% of the gold loan and is now completing a banking syndicate.
The balance of about US$30 million will be arranged equally by Bema and its Chilean partner through equity issues.
The Refugio project has an open pit minable reserve of 112 million tons grading 0.030 oz. gold per ton at a strip ratio of 1-to-1. The project is expected to produce an average of 233,000 oz. of gold at an estimated operating cost of US$189 per oz. over its 9.4-year life.
Bema expects to complete its financing arrangements by March, 1992, with construction starting immediately thereafter.
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