Sihayo expects to complete permits for RI gold project end 2015
Wednesday, May 20 2015 - 04:14 AM WIB
ASX-listed Sihayo Gold Ltd said it is in the process of working through the permitting phase for its Sihayo/Pungkut gold project in North Sumatera.
?The exact timing for completion is uncertain but is expected to be late in this calendar year,? Sihayo said in a statement Wednesday.
Whilst there have been costs associated with progressing the permitting process, the company said it has significantly reduced cash burn in other areas such as site security, executive and administrative costs.
Sihayo said that major shareholders IDX-listed investment firm PT Saratoga Investama Sedaya Tbk. and Provident Minerals Pte Ltd have committed to funding the company?s operations through to completion of the permitting phase.
The company has just drawn the last US$100,000 of its $1million convertible loan agreement with these shareholders. The company is in the process of arranging another similar facility with the same shareholders which is expected to fund the company for another 6 months or more.
Going forward until the completion of the permitting phase late in the year, the company expects to have smaller negative quarterly operating cash flows compared to that reported for the last quarter.
On completion of the permitting phase, the company will re-evaluate the project in the light of the prevailing gold price and project optimisations to determine how to further progress the project.
The company has JORC compliant confirmed resource of approximately 1.5m oz of gold, a completed DFS, and a track record of financial support from shareholders which the company expects will continue until completion of the permitting phase and then eventually through to project financing to fund construction to production.
Editing by Reiner Simanjuntak