Ark Mines Ltd’s (ASX:AHK) shares have risen after securing a US$6 million facility to fund its Mt. Porter gold mining project near Pine Creek in the Northern Territory.
The gold loan facility which is to be repaid in gold bullion, is being provided by Chan Investments Ltd and arranged by Panasia Ltd, both based in Hong Kong.
Ark intends to make its first drawdown of $US2.6 million and commence mining as soon as the Mt. Porter Mining Management Plan (MMP) is approved by the Department of Mines and Energy in the Northern Territory.
The drawdown will enable Ark to immediately pay the bond required under the MMP and is expected to be sufficient to complete the project, taking into consideration negotiated contractor terms and expected cash flows from Mt. Porter gold sales.
The Mt. Porter project has a JORC 2004 resource of 34,200 ounces with gold recoveries of 73% to 76%.
At a gold price in Australian Dollars of A$1700 per ounce, the net cash to Ark from the project is $9.5-$11.5 million after all costs.
Currently, the Australian Dollar gold price is trading at A$1740 an ounce, adding further intrigue to the metrics.
The Mt. Porter project was acquired from Arafura Resources Ltd (ASX:ARU) in June 2016 for $300,00.
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