Allied announced today the loan funds, together with a hedging facility of up to 250,000 ounces of gold, had been secured through RMB Resources Limited.
The loan facility is in addition to a total of more than A$50 million raised in new capital by Allied Gold this year to take Simberi through to project commissioning in the first half of next year.
"The financial package includes a mandatory hedging component of 150,000 ounces which represents 21% of Simberi's current known mineable reserves and resources," Allied Gold Managing Director, Mr Wayne Loxton, said today.
"Establishment of the RMB loan is another milestone in the development of our project and in conjunction with the equity funds already secured, now completes the financing package," Mr Loxton said.
In February this year, Allied placed 25 million ordinary shares at an issue price of A$0.40 cents per share to predominantly UK based investors, institutions and fund managers to raise A$10 million. In the second part of the capital raising, just completed, Allied placed a further 94.7 million shares at A$0.44 each, taking the total number of Allied shares on issue to 243 million.
Allied will next month become one of the first companies with a new, previously undeveloped mining project in Papua New Guinea, to dual list on London's Alternative Investment Market and ASX.
"The term of the loan announced today is until 31 December, 2011, with security for the loan a charge over the project assets and a guarantee from Allied Gold," Mr Loxton said.
"Exploration properties not forming part of the Simberi oxide gold project are not specifically encumbered, which is important as it enables the Company to continue to explore and develop other project areas in our Island tenements."
Pre-development earthworks and the establishment of infrastructure for the mining of the Simberi oxide deposits has commenced.
Allied's currently identified oxide gold mining project Ore Reserves and Mineral Resources within designed pits at Simberi total 17.1 million tonnes at 1.30 g/t gold for 712,000 ounces. Total Mineral Resources on Simberi Island currently comprise 46.8 million tonnes at 1.51 g/t gold for 2.27 million ounces. Thew Island is located 60 kilometres to the northwest of Lihir Island.
Allied Gold Limited