In order to fund all its planned 1996 programs without issuing any more equity, Greenstone Resources (TSE) has arranged US$25 million in debt financing.
The financing consists of a US$15-million line of credit secured by the company’s Santa Rosa gold mine in Panama, as well as US$5 million in preproduction financing for the Cerro Mojon project in Nicaragua, and US$5 million in equipment financing for the mobile fleet of mining equipment needed at Cerro Mojon.
With the cash in hand, Greenstone’s management will proceed with near-term objectives of increasing proven and probable reserves of 3.5 million by 1996, and reaching annual production of 200,000 oz. and operating cash flow of US$40 million by 1998.
Greenstones’ Santa Rosa mine is expected to produce over 60,000 oz. gold this year. Cerro Mojon is targeted to produce 65,000 oz. annually once up and running.
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