NQ Minerals PLC (AQSE:NQMI) has entered into a US$10mln loan facility with a US private equity firm so that it can advance operations at the Hellyer gold mine.
The loan carries a 12% annual interest rate and is due for repayment after three years.
Alongside the loan, the miner has also agreed to sell silver produced at the mine to the financier on set terms. It commits the company to handing over 30% of the first 8mln ounces of produced silver and 10% of the produced silver thereafter.
READ: Positive study shows NQ Minerals could begin production at Hellyer this year
"We are delighted to have secured this further financing that will allow us to continue to develop and start operating our Hellyer mine project,” said Brian Stockbridge, NQ Minerals chairman.
“We are excited by the potential for this project and anticipate that it will, over time, deliver significant shareholder value."
The Hellyer operation is anticipated to yield 80-90,000 gold equivalent ounces per year from tailings over the next decade.