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Aureus Mining set to finalise debt deal

Last updated: 13:27 13 Mar 2013 GMT, First published: 14:27 13 Mar 2013 GMT

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David Reading, chief executive (CEO) of Aureus Mining (LON:AUE), is quite happy ploughing a lonely furrow in Liberia.

His firm’s New Liberty project is set to be the first commercial gold mine in Liberia, with the first gold pour scheduled for the fourth quarter of 2014.

But by Reading’s estimation, the company’s sense of solitude is wider than that.

"We’re in a unique position; over the next 18 months we’re probably going to be the only company to complete a mine build in West Africa,” he told Proactive Investors.

"I’m not saying other projects won’t be built but we were able to get the equity fundraising through the door in November and now that market is shut."

There is another element that is about to fall into place that will help cement this position as the only party in town.

The CEO is confident Aureus is on the cusp of finalising a debt mandate with a syndicate of banks.

"We are going to make an announcement on bank debt on New Liberty very soon - we are weeks away.

"We are looking for US$80 - US$100mln and we are confident the banks are keen to lend to the project based on the number of offers we’ve had,” he said.

With the loan documentation expected to be finalised in the second quarter of 2013, the company expects to draw on the funds from the following quarter onwards.

"We’re not a company treading water in difficult times, we are building the company focused on growth; we are exploring and mine building,” Reading added.

His bullish tone seems justified if recent results are anything to go by.

Just 28 kilometres away from New Liberty is the firm’s Weaju gold target, which is part of the same Bea Mountain licence.

New drill results at the site confirmed high grade mineralisation as close as 20 centimetres from the surface.

The best results included 10 grams per tonne of precious metal over 7.5 metres, 6.6 grams over 9 metres, 4.6 grams over 11.3 metres and 2.5 grams over 19 metres.

More drilling is going to be done at the site, but it means the company now expects to have results from two of its exploration projects this year: Weaju and Ndablama.

Reading is keen to change perceptions that Aureus is “a one horse company”, with New Liberty often hogging his firm’s headlines.

"We expect to be exploring this area for many years and finding much more,” he said.

"This is a completely unexplored series of belts and we believe there will be more discoveries.”

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