Metals Exploration has agreed a rescheduled debt facility for US$81 million with its lenders for its Runruno Gold Project in the Philippines. Mining and processing operations at the mine are ramping up soundly.
The UK-based company says that in the Runruno plant processes are being ramped up progressively to design throughputs.
Under the terms, before what is deemed the project is complete, the interest on the loan is six months’ US LIBOR plus a 5.75% margin, but that interest reduces to 4.75% once the project is completed. The company will make quarterly repayments until December 31, 2019.
In addition, the lenders - the Hongkong and Shanghai Banking Corporation Limited and BNP Paribas - have decided the group must hedge 35% of forecast annual gold production during the life of the facility.
Currently, Metals Ex has sufficient hedging in place until September 2018 and no additional forward gold sale contracts have been requested.