www.cgamining.com
CGA Mining (ASX:CGX, TSX:CGA) and its subsidiaries, is a producing gold mining company, with its principal asset being the +200,000 ounce per annum Masbate Gold Mine in the Philippines. The Masbate Gold Project has total resources of approximately 7.7m ounces and and reserves of 3m ounces.
The Masbate Gold Project is the largest operating gold project in the Philippines. Construction on the process plant was successfully completed in February 2009, less than 2 years after acquisition of the project, with the construction and installation of the power plant completed in April 2009. First gold was poured on 12 May 2009, with over 1 tonne of gold poured by September 09 and total production in excess of 150,000 ounces in the first year of operation. The project is forecast to produce over 200,000 ounces per annum and an expansion to 6.5mtpa is planned in 2010/2011 to further increase the production profile of the project.
The Company is focussed on enhancing the value of the Masbate Gold Project by both production growth and an aggressive exploration program on the highly prospective tenements and identifying new growth opportunities, through judicious and profitable acquisition programmes.
CGA Mining project completion fully satisfied for Masbate finance facility
CGA Mining (ASX: CGX, TSX: CGA) has announced that the Project Completion has been successfully achieved for the project finance facility for the Masbate Gold Project in the Philippines.
The facility will be US$43.478 million at the end of the June quarter 2011 before any further prepayments.
Importantly for CGA Mining, having now satisfied the Project Completion, the following additional benefits apply to the facility:
- The margin will be reduced to LIBOR plus 3.15% from LIBOR plus 3.65%;
- Any guarantees from CGA Mining will be released and the project will go non-recourse to the company; and
- The project will be able to flow all excess funds (above and beyond the Debt Service Reserve Account) to any other entity within the CGA group, with any payment out of the security structure to be applied as to 25% to a further prepayment of the principal outstanding under the facility, subject to the satisfaction of normal financial ratios.
This latest good news for CGA Mining comes hot on the heels of yesterday’s announcement where the company continues to 'exceed expectations' in the production of gold at Masbate, with the company achieving a new monthly throughput production record in May.
Over the month CGA Mining processed 605,330 tonnes at a throughput rate of 870dtph and an availability of 93.51%, equating to an annual throughput rate of 7.1mtpa.
The result for the month of May is that 17,074 gold ounces were produced, with a gross value of around US$26.3 million, based on the current gold spot price of US$1540 an ounce.
Masbate is the largest gold project in the Philippines and has a total Indicated Resource base of 4.55 million ounces, a total Inferred Resource base of 3.22 million ounces and a Probable Reserve of 3.03 million ounces.
