Equip-ment financing for the Refugio gold project owned 50% by Bema Gold (TSE) has been arranged through Caterpillar America and its Chilean distributor.
Caterpillar will supply up to US$24.6 million in mining equipment for the Chilean project on a 100% credit purchase basis at Libor plus 2.75%. The loan is repayable in quarterly instalments over 5.25 years. A maintenance and product support contract is currently being negotiated.
The equipment financing removes one more hurdle to completing full financing for the project. Total cost of the project is estimated at US$130 million including US$29 million to cover working capital and financial costs. Bema has received a financing commitment from Sharps Pixley to fund 20% of a US$75-million gold loan. Efforts to complete a syndicate are ongoing. The balance of the cost, about US$30 million, will be provided by the two partners. Bema plans to raise its share through an equity financing in January or February next year.
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. gold at an estimated operating cost of US$189 per oz. over its 9.4-year life.
Be the first to comment on "Caterpillar finances Bema equipment"