Battle North Gold has secured a US$40 million loan to fund construction to the finish its Bateman Gold Project in Red Lake.
The Toronto mine developer announced Dec. 22 has executed a binding commitment letter with Macquarie Bank for a five-year loan with the proceeds of this credit facility expected to fully fund the mine project through commercial production.
Some of the upcoming construction at Bateman includes portal construction and ramp development, ammonia treatment plant construction, tailings management facility upgrades, and general camp upgrades of the $109-million project.
The company released a positive feasibility study in October for the restart of the Bateman mine project, placing an 8.2-year mine life on the project in northwestern Ontario, two years longer than what was forecast in the company's preliminary economic assessment from last year.
The study estimates 602,987 ounces worth of gold production over the eight-year period, which would include a 21-month ramp-up toward full commercial production.
Surface portal construction can start in the first quarter of 2021.
"Today's announcement is a major milestone for the company and for the community of Red Lake," said Battle North president George Ogilvie in a statement.
"The credit facility, along with our existing cash balance, are expected to provide us with all the funding we require to complete the construction of the Bateman Gold Project. We believe 2021 will be a transformational year for the company as we look, subject to board approval, to complete construction and realize first production from the Bateman Gold Mine. Along with our Red Lake regional exploration and string of pearls drilling programs throughout 2021, it should make for an exciting year."
"The company is pleased to welcome Macquarie, a recognized global project finance bank in the mining sector as one of its key stakeholders. We would also like to thank our advisors, Cutfield Freeman & Co. and Cassels Brock & Blackwell LLP, for their valuable input throughout this process."
Besides the Bateman project, Battle North also owns a large gold exploration land package on the Long Canyon gold trend near the Nevada-Utah border.