Central Asia Resources (ASX:CVR) has executed a US$1.5 million unsecured gold finance facility from a private investment consortium, West Asia Minerals Limited, operating out of the Middle East.
The loan is for a term of 28 months, to be drawn down in four tranches with no repayments for the first 3 months.
The funds will be allocated to a limited restart of the Dalabai operations (90% CVR), located in the Chu Ili gold belt in southern Kazakhstan.
The limited restart is anticipated to be a four month exercise, to produce 1000 to 1100 ounces of gold as a planned precursor to a full mining restart.
Central Asia holds two license areas in Kazakhstan, which include four deposits with JORC Resources, and are hosted within recognised gold belts and are close to operating mines and infrastructure.
Additional loan details
The lender has advanced US$285,000 of the US$1.5 million. Further tranches are conditional upon securing access to a resin desorbtion facility, a workout plan for creditors, recommencing gold production and securing a minimum further funding of US$2 million.
Phase 2 funding is required to complete a full restart of mining operations, and third party desorbtion negotiations are at an advanced stage with three parties.
Repayments are payable from gold production at Dalabai. Following full drawdown, CVR will be required to repay an aggregate equivalent of 1825 ounces of gold, at a rate of 73 ounces per month, or equivalent in cash if approved by the lender.
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