Battle North Gold (TSX: BNAU) is looking to become the next gold producer in the Red Lake region of Ontario. The company this morning announced that its board of directors have approved the construction of the Bateman Gold project, as outlined in the firms feasibility study.
The company will now move forward with commencing construction of the mine facility, with the firm expecting to deploy $59.1 million in 2021 in initial capital development. Initial expenditures will go towards underground development, construction of an ammonia reactor, upgrades to the tailings management facility, and camp and mill, and the acquisition of mobile and stationary equipment.
The company also has revealed that it intends to spend $17.8 million on capitalized operating costs expenditures this year, which includes further infill drilling, site maintenance, and underground development.
The expense of development and construction is expected to be funded via a US$40 million credit facility the company obtained in December, as well as through its current cash position. The project is currently expected to be fully funded through to commercial production.
Presently, Battle North is guiding to the processing of ore at the mine by the end of 2021, while commercial production is expected to be achieved by the end of 2022.
Battle North Gold last traded at $1.77 on the TSX.
Information for this briefing was found via Sedar and Battle North Gold. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
