Check out the 3rd March gold project funding announcement by west aussie Catalpa Resources (CAH). Macquarie Bank agreed to a $67m project finance facility which will go towards the approx $90m project capital required. (Full details in article in today's Australian newspaper.
Compare the feasability studies of IGR's and CAH's similar sized projects for yourselves. IGR is forecast to have lower capex requirements and lower cash cost per ounce ($504 versus $636)amongst other parameters.
Integra's revised Feasability Study by June should be an absolute belter with substantially revised assumed higher gold prices than previous and expected lower operating costs in the current environment. IGR's Internal Rate of Return (IRR) for the project should be much higher than previous forecast of %41.
The fact that Macquarie have stumped up $67m and Lion Selection willing to chip in $15m, it shows that even during this economic crisis; low risk, quality projects with sound IRRs will still be attractive to debt funding and other financing measures.
This deal for CAH should be a great fillip and confidence boost for IGR directors, management and shareholders. I will sleep even more soundly going foward knowing that our great project should be financed on good terms within 6 months.
Cheers Sarge
IGR Price at posting:
19.5¢ Sentiment: Buy Disclosure: Held
