Victoria Gold’s Eagle project in the Yukon moved closer to production with the announcement of a debt facility to fund construction.
Victoria Gold Corp. (VIT:TSX.V) announced on Jan. 24 that BNP Paribas has been appointed to arrange up to US$220 million of senior, secured project debt for the Eagle gold project. John McConnell, Victoria’s president and CEO, stated, “This facility is expected to be the foundation of the financing package that will fund the Eagle Project through construction and into production.”
Chris Thompson, an analyst with Raymond James, noted in a Jan. 25 report that the financing “satisfies ~80% of the estimated C$370 mln initial Capex required to build Eagle. Whilst VIT has ~C$66 mln in cash on its balance sheet, we see additional funds being raised via equity financing.” He also stated that “Eagle is shovel-ready, fully permitted and enjoys the support of local First Nations. Further, while located in Yukon (some view as infrastructural challenged), we see Eagle as being well served by current (camp, road, water) and future (power) infrastructure.”
“‘With a global resource of 4.4 mln in-situ oz (2.7 mln oz in reserve), Eagle is capable of delivering a +200 koz/year production profile + 11 year mine –attractive to potential acquirers (we think) looking to add low cost North American production ounces,” stated Thompson.
That positive sentiment was echoed by Richard Gray of Cormark Securities, who noted in a Jan. 26 report that the appointment of the lead arranger is a “good first step for Victoria in its efforts to fully fund the construction costs of the C$370 MM Eagle project. . .we expect the remaining C$60-100 MM of financing required will likely be some combination of equity and/or stream.”
Gray also wrote that Eagle “continues to be well advanced with an invaluable suite …read more