Gold miner Millennium has been approved for a loan facility which will facilitate the expansion of the processing plant at its Nullagine Gold Project in Western Australia.
Millennium told the ASX on June 5 it had secured a Revolving Loan Facility and Risk Management Facility from Investec, for a $17.5 million financing deal.
The loan, along with existing cash reserves, will fund the acquisition of key plant and equipment, and provide working capital to expand the existing 2 million tonnes per annum CIL processing plant, to facilitate the treatment of sulphide resources.
Expansion works include the addition of a new de-slime cyclone, new spirals, and new mills to the plant.
The total capital cost of the expansion is $15 million.
Millennium said it’s already placed initial orders for key long-lead items needed, and it expects to commence commissioning of the expanded plant in the first quarter of the 2019 calendar year.
“Investec has financed numerous high-profile and successful Australian gold projects and gold companies,” Millennium chief executive Peter Cash said. “Having them involved as we take this next critical step in our development represents a big vote of confidence in the future both of Millennium and the Nullagine Project.”
Cash said the “relatively modest” capital cost of the expansion project would allow Millennium to carefully manage and control its funding situation over the next 6-9 months, “ensuring that we can deliver this critical expansion program on time while continuing to grow our Resource and Reserve inventory”.