www.hambledon-mining.com
Hambledon Mining plc is a gold mining and development group, which is operating the Sekisovskoye gold mine close to Ust Kamenogorsk in East Kazakhstan.
The Company has been mining from an open pit and operating an 850,000 tonnes per annum treatment plant since 2008. Underground mining at Sekisovskoye began in late 2011 on time and on budget. From a combined production from the underground and open pit mine of approximately 30,000 ounces in 2012 a figure of approximately 100,000 ounces is targeted from the underground mine alone in 2017. It hopes to complete the purchase of Akmola Gold LLP in March 2012, bringing in to the group two gold deposits with a total resource of 440,000 ounces gold.
Hambledon Mining secures EBRD investment to develop Sekisovskoye gold mine
Hambledon Mining (LON:HMB) has reached a funding agreement with the European Bank for Reconstruction and Development (EBRD), which could provide it with over US$20 million to invest in its flagship project.
This morning, the company announced that EBRD has agreed terms of a US$15 million loan facility and a US$3 million equity investment at a price of 3.25 pence per share. In addition, Hambledon has issued warrants over 30 million shares worth US$2.3 million.
This agreement follows the approval by the EBRD board of directors earlier this month.
All of these funds will be invested in the development of the Sekisovskoye underground gold mining operation in Kazakhstan.
Under the terms of the deal, US$15 million will be lent in two tranches, which will be repayable in quarterly instalments between January 2015 and October 2017. The loan ceases to be available for draw down in February 2014.
The company expects to satisfy all of the conditions of the loan agreement within four weeks, enabling it to receive the first tranche of US$10 million.
The availability of the second tranche is subject to certain production targets being met.
Hambledon also said that its director Jeff O’Leary will step down from the board to make room for a director nominated by EBRD.
Hambledon aims progressively to ramp up gold production at Sekisovskoye to 100,000 ounces per year. Only yesterday, Hambledon reported high grade drill results from the project with one hole returning more than 10 grammes per tonne gold.
The results are consistent and in many areas exceed the geological and mineral resource modelling previously carried out at the property, the company said.
