Unity Mining snares $45 million from Commonwealth Bank for...

Unity Mining snares $45 million from Commonwealth Bank for Dargues Reef gold mine in NSW

http://www.proactiveinvestors.com.au/companies/news/48772/unity-mining-snares-45-million-from-commonwealth-bank-for-dargues-reef-gold-mine-in-nsw-48772.html


Unity Mining (ASX:UML) has achieved a significant milestone in the development of its Dargues gold mine in New South wales, with Commonwealth Bank to provide a $45 million project finance facility.

Scoping studies have confirmed the project is cash positive at a gold price of $1,150 and an average grade of 6 grams per tonne.

The facility is structured as an gold prepay over 3 years with an associated gold hedging facility to protect a proportion of revenue over the initial 2 years of the loan.

Unity Mining acquired the Dargues gold project via a merger with Cortona Resources (ASX:CRC) in January 2013.

The combined entity now controls a producing gold mine in Tasmania, the developing Dargues gold mine in New South Wales, and exposure to exploration assets in Australia and West Africa.

The funding package reflects the reduced risk profile of the enlarged group and is subject to credit approval. Finance arrangements previously established with Deutsche Bank by Cortona have been terminated.

The Dargues Reef ore body lies 60 kilometres southeast of Canberra, originally discovered in the early 1870’s by Mr. James Dargues.

Historic gold production from Dargues Reef is estimated at a over 2,000 tonnes at a grade of 14 grams per tonne gold.

Identified resources and reserves within the project were last updated in June 2010, and stand at 1.61 million tonnes at 6.3 grams per tonne for 327,300 gold ounces.