A gold loan of 106,000 oz has allowed International Corona Resources to pay off its share (50%) of the financing for the producing David Bell gold mine at Hemlo in northern Ontario. Corona sold the gold forward, realizing about $50 million(US). Its share of the mine financing equalled $42 million(C); the company says it intends to use the balance for general corporate purposes. Corona’s partner in the mine is Teck Corp., which acts as the operator.
The gold loan was provided by Chase Manhattan Bank of Canada, as agent, and Citibank Canada. The gold loan has a 10-year repayment term with the first principal instalment scheduled for the fourth year when equal quarterly repayment of the principal will commence.
The David Bell mine produced more than 130,000 oz gold during the 12 months ended Sept 30, and more than 30,000 oz in October and November combined, the company reports.
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