Kentor Gold Ltd
(ASX:KGL) has appointed Macquarie Bank to arrange US$50 million in debt finance for development at its Andash project.
The gold and base metals explorer says the US dollar denominated debt deal involves no hedging and will give shareholders maximum exposure to the future upside in both gold and copper prices.
Macquarie will now work towards completing its due diligence and securing internal approvals to allow the bank to provide Kentor with a committed letter of offer for the facility.
Kentor Gold says the debt finance mandate will facilitate the full development phase of the Andash project.
Key features include a capital cost of US$96 million and average annual production of 70,000 ounces of gold and 7,400 tonnes of copper for an initial six years with expansion potential.
Kentor Gold recorded a $2.2 million net loss in the six months to 30 June 2010.
