============================================== Project Finance The project is fully funded with EnviroGold having provided US$36 million of equity. Macquarie Bank Limited have provided a US$7.5 million advance which will be repaid by a 3% gold royalty, and is progressively providing a US$37.5 million project loan. The loan should be repaid within 18 months of the first gold pour, which is expected in early 2012.
A Dominican Government-owned Bank, BanReservas, will provide standby facilities in the form of a US$2.5 million four year project loan, and a US$2.5 million overdraft facility. These loans have been arranged to finance any project cost over-runs if such becomes necessary. EnviroGold has forward sold 126,000 oz of future gold production (30% of total production) at US$1,358 per oz, less fees. =============================================
Given current gold prices the loan should be repaid a lot sooner than 18 months (even with the 30% hedge). That will free up cashflow to fund exploration in the other great prospects we have.
EVG Price at posting:
18.0¢ Sentiment: Hold Disclosure: Held
