AURELIA METALS (ASX:AMI)Gold-base metals miner AMI says the process for a new credit facility to fund its Federation polymetallic mine development in the Cobar basin of NSW is “progressing well”.Commercial terms are largely agreed, subject to final and binding documentation, it says.AMI has spent years building up to the development of Federation, but faced a revolt last year after word of a placement got out ahead of the release of its feasibility study, prompting investors terrified of a dilutive, discounted capital raising to run for the hills.AMI’s shares were not in a halt, tanking the price and hurting the prospects of raising the finance for the $108m development.The high-grade deposit has a zinc dominant reserve of 2.2Mt at 8.9% Zn, 5.3% Pb, 1.4g/t Au, 6.0g/t Ag and 0.3% Cu. Production life is estimated at an initial eight years, with ore to be processed at AMI’s nearby plants at Peak and Hera.In preparation for the restart of activity at Federation, an update of the Federation Mine design, scope and capital cost estimate has been undertaken and is near complete, AMI says.An update is due next month.The end of operations at AMI’s nearby Hera mine – which is currently transitioning into care and maintenance — has also provided opportunities to reduce capital cost through the reuse of assets and infrastructure, it says.Its other two operating mines include ‘Peak’ in the Cobar Basin, and ‘Dargues’ in southeastern NSW.Next on AMI’s development schedule will be ‘Great Cobar’, another high-grade base metals deposit in the Cobar Basin.The $150m capped stock is flat year to date, but down a massive 74% over the past year.
* article from today. This is the best news longsuffering holders have had for more than twelve months. Andrew Graham is on fire and has submitted a strong resume for the permanent position. Surely they wont overlook him for a washed up has-been with a silky past. This announcement for funding will define Andrew's position. Unlikely to fail at last hurdle for mine.
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