Archipelago reports N. Sulawesi gold project financing progress

UK goldminer Archipelago Resources said Thursday that it has received an Indicative Term Sheet setting out the terms and conditions of a loan facility, from an Australian banking group.

This loan facility together with a planned equity raising will provide project development financing for construction of the processing plant including associated civil engineering works for the Toka Tindung Gold Project in North Sulawesi

The Indicative Term Sheet came after AMC Consultants had completed its Technical Due Diligence Study of the Toka Tindung.

The work was commissioned by the Australian banking group as part of the due diligence process required for the provision of a loan facility which together with an accompanying equity raising will provide project development financing for construction of the processing plant and associated civil engineering works.

The company is in discussion with the banks regarding the loan facility sought to develop Toka Tindung Project.

The Toka Tindung Project has a resource of 1.75M oz of gold equivalent of which at least 0.9M oz will initially be mineable by open pit. Production is targeted at 160,000 oz per annum for an initial 6-year mine life commencing in mid 2006. (alex)