Sumatra draws down additional loan for Tembang project
Monday, May 26 2014 - 03:47 AM WIB
ASX-listed Sumatra Copper & Gold plc announced on Monday that it has signed a variation of the Convertible Loan Facility Agreement dated 4 December 2013 to increase the facility by US$600,000 to US$4,600,000.
The additional US$600,000 has been fully drawn for the purpose of providing the company with working capital through h to the anticipated funding of the Tembang project in Central Sumatra, it said in a statement.
It added the company has received the final Independent technical expert report on the project. The report has been provided to potential financiers as part of the negotiation of the quantum of proposed debt financing for the project.
Tembang is Sumatra?s flagship gold project and is on-track for production during 2015. Tembang is located in the Bengkulu district in central Sumatra and covers an area of around 850 km2.
Sumatra is advancing a two-stage production plan at Tembang. Stage 1 is a high-grade, low-cost operation, which constitutes around 18 percent of Tembang?s total resource. Stage 1 has an anticipated five year mine life with 400,000 tpa production rate. Stage 2 will be processed following the conclusion of Stage 1.
Editing by Reiner Simanjuntak