www.millenniumminerals.com.au
Millennium Minerals Limited (ASX:MOY) is an emerging metals company focused on the exploration and development of a large tenement portfolio in the East Pilbara region of Western Australia. The high-quality portfolio encompasses a large gold inventory and a secondary molybdenum project.
Millennium Minerals receives A$10m project finance boost for Nullagine
Millennium Minerals (ASX: MOY) has reached a milestone with the confirmation of a new facility from the National Australia Bank (ASX: NAB) to support the expanded scope of the 1.25 million gold ounce Nullagine Gold Project and 25% increase in forecast gold production.
The big Australian bank will provide $10 million in financing facilities for the project.
These new funds are in addition to the $35 million project financing facilities being provided by BNP Paribas, with the total lease facility now A$45 million between the banks. This follows an earlier rights issue which raised $23.2 million.
The additional facility will support the expanded scope of Nullagine, following the company’s successful drilling program which has seen a 25% increase in ore reserves, and the subsequent 25% increase in forecast gold production.
The new finance facility will provide for the leasing of transportable buildings, mobile equipment and light vehicles and other elements associated with the construction and development of Nullagine.
Millennium continues to move the project forward quickly, and has already ordered long lead items for project construction including camp, offices, buildings, workshop, stores and facilities.
The facilities are being provided by the Airlec Group, as well as a 4MW semi‐autogenous mill being supplied by Autotec.
These items define the critical path for the construction phase of the project and the timing of the orders will ensure the 14 month development period is achievable as planned.
Boosting the Golden Eagle footprint
Within Nullagine, is the highly prospective Golden Eagle deposit.
Golden Eagle already hosts around 70% of the gold resource attributable to the 1.25 million gold ounce project, and in April, Millennium through a strategic joint venture boosted the company's footprint around the deposit.
If new exploration confirms an extension to this mineralised corridor within the new tenements, then Millennium has the potential to significantly increase the company's gold inventory.
The joint venture with the Creasy Group covers the Mosquito Creek Formation, providing Millennium with an immediate 70% interest in the tenements.
Consideration for the joint venture is Millennium will issue Creasy just over 8 million shares for the stake, with Millennium sole funding all required expenditure.
Creasy is not required to provide funding until the completion of a Bankable Feasibility Study and a decision to mine.
