Source: Calidus Resources
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  • Calidus Resources (CAI) has locked in a $110 million debt facility for its Warrawoona Gold Project in WA
  • The gold explorer has signed an agreement with Macquarie Bank (MBL) to help it fund the construction of a plant at Warrawoona
  • It’ll have just over three years to repay the loan once repayments begin in June 2022 — with the added option to repay early
  • As part of the agreement, Calidus has also agreed to hedge approximately 25 per cent of forecast production, equal to 105,000 ounces of gold
  • Additionally, security will be provided via a fixed and floating charge over the assets of its subsidiary Keras Gold
  • The loan agreement between Calidus and Macquarie is due to be finalised early next year
  • Shares in CAI are currently trading up 3.67 per cent at 56.5 cents each

Calidus Resources (CAI) has locked in a $110 million debt facility to help funds its developing Warrawoona Gold Project in WA.

The gold exploration company signed an initial agreement with Macquarie Bank (MBL) after a “rigorous” tender period.

The additional funds will be used to fund the construction of a plant at Warrawoona, which is due for completion next quarter.

Debt facility

Calidus will have just over three years to repay the loan once repayments begin in June 2022 — with the added option to repay early with no penalties.

As part of the agreement, the company has agreed to hedge approximately 25 per cent of its forecast production, equal to 105,000 ounces of gold.

Deliveries of the hedged gold will be carried out across the tenor of the facility.

Additionally, CAI has agreed that security will be provided via a fixed and floating charge over the assets of its subsidiary, Keras Gold.

This guarantee will last until the Warrawoona Gold Project is completed and is secured by CAI’s shares held in Keras.

At this stage, the full loan agreement between Calidus and Macquarie is due to be finalised early next year.

Commenting on the debt facility, CAI Managing Director Dave Reeves said securing the loan was a significant milestone.

“Macquarie has conducted extensive due diligence on Warrawoona and their agreement to provide the facility is a strong vote of confidence in the project and Calidus, and we look forward to working with the team at Macquarie on completing all documentation and conditions precedent to drawdown,” he said,

“With the access road, water bores and telecommunications now complete and the village install progressing on time and budget, we will now conclude all major contracts and final operating permits to allow for main project construction in the
coming quarter,” Dave added.

Shares in Calidus Resources are trading up 3.67 per cent at 56.5 cents at 12:09 pm AEDT.

CAI by the numbers
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