Metals Exploration has negotiated a new debt repayment timetable with the financiers of its Runruno Gold-Molybdenum Project in the Philippines. The company hopes this will help negate the effects of ongoing delays in starting production.
First gold production from the mine in Luzon has been delayed by repairs following typhoon Lando as well as permitting issues.
Metals Ex says that clearing up and repairing the damage is complete while work on the tailings system is nearing completion.
The company is engaged in talks with the Philippines Mines and Geosciences Bureau to commence verification of the rehabilitation and enhancement works to lift the partial suspension order that has stopped the mine’s commissioning. It is hopeful this will happen this month, with a move into commercial operations shortly thereafter.
Metals Ex borrowed US$75 million to build the mine. A first repayment of US$2 million is now due by the end of March, a further US$13 million in June and instalments every six months thereafter until the end of 2018.
Metals Exploration is an AIM-listed natural resources exploration and development company operating in the Pacific Rim, with particular focus on the Philippines.
The company’s principle asset is the Runruno project which it acquired in February 2005 and has recently increased its interest to 100%. Work has defined a resource of 1.39 million ounces of gold, and 25.6 million pounds of molybdenum with 1.05 million ounces of gold reporting to the measured and indicated categories and 900,000 ounces within the mining proven and probable reserve category.