Minera IRL agrees new bridge loan of $70m
Minera IRL investors welcomed news from the company that it has secured a $70m bridge loan from the Peruvian state-owned bank, Corporacion Financiera de Desarrollo.
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The loan is expected to be the first step to agreeing a senior project credit finance facility of up to $240m, which would be used to build its Ollachea gold project in the Puno Region of southern Peru.
The company expects that the bridge loan, which has a term of 24 months, will be repaid from the follow-up facility.
It will be used to consolidate debt and any net proceeds will be put towards advancing the development of Ollachea as well as funding a limited resource expansion drilling campaign.
"Minera IRL can now focus on taking final steps toward financing its flagship project to production," executive chairman Daryl Hodges said.
"With support from Corporacion Financiera, the company is in a much better position to arrange financing for Ollachea, build the project, deliver on its commitments to the local community to create jobs, wealth for the benefit of the region, and create new opportunity for its shareholders."