The Hemi gold project, in Western Australia, is getting closer to a final investment decision with developer De Grey Mining on Friday announcing that the project was fully funded.
The ASX-listed company has secured a A$1-billion senior debt facility from commercial banks and government agencies, as well as a A$130-million cost overrun facility.
This, combined with De Grey’s existing cash reserves of about A$850-million following a recent A$600-million equity raising, will fund the construction of the half-a-million-ounce-a-year gold mine.
CFO Peter Canterbury stated that the company would finalise documentation with the lender over the coming months to achieve the targeted A$1-billion senior debt facility in the second half of the year.
De Grey is still awaiting environmental approvals before construction can be initiated, he added.