- Bellevue Gold (BGL) completes its $200 million project loan facility with Macquarie Bank (MGQ)
- Coupled with its existing cash reserves of $188 million, the facility means Bellevue’s namesake project in WA is fully funded through to production
- The Bellevue Gold Project is expected to be one of the highest-grade, lowest-cost mines in Australia with the first five years producing an annual average of over 200,000 ounces at an AISC of $992 per ounce
- BGL’s shares have ended the day up 3.14 per cent to trade at 82 cents each
Bellevue Gold (BGL) has executed a project loan facility totalling $200 million with Macquarie Bank (MGQ).
The completion of this loan facility complements Belleve’s existing cash reserves of $188 million which was boosted by a $131 million capital raise in September.
The company is utilising the funds to develop its namesake Western Australian project through to production.
According to BGL, the Bellevue Gold Project is forecast to be one of the highest-grade, lowest-cost mines in Australia, with the first five years producing an average of more than 200,000 ounces per year at an all-in sustaining cost (AISC) of $992 per ounce.
Over the project’s 8.1-year mine life, Bellevue plans to recover 1.5 million ounces of gold.
Managing Director Steve Parsons was pleased to have executed the loan facility as it means the company is fully funded to move the Bellevue project into the production stage.
“We appreciate Macquarie’s comprehensive support and assistance to achieve what is another milestone for our company,” Mr Parsons said.
Bellevue still has a number of conditions it needs to satisfy before the first project loan facility drawdown. These include obtaining necessary project approvals, entering key project contracts and completing the minimum hedge requirement.
The company doesn’t expect drawdown of the loan facility until August next year.
BGL’s shares were up 3.14 per cent to trade at 82 cents at market close on Wednesday.