Inca One Enters $9.0 Million Gold Pre-Payment Agreement
Inca One Gold (TSXV: INCA) this afternoon announced that it has secured another non-dilutive financing facility for its ore processing operations. The facility comes from the same firm that previously provided Inca with a $2.5 million facility, OCIM Precious Metals SA.
The latest facility is pegged at a total figure of US$9.0 million, with the funds to be provided via what is effectively a gold pre-payment facility. The arrangement is expected to enable the firm to continue to scale its Peru operations, enabling production to climb as high as 225 tonnes per day based on current gold prices.
The initial drawdown of the facility is slated to be US$6.0 million, with access to the additional US$3.0 million portion to be made available upon the repayment of 50% of the facility. “Following the successful completion of our first non-dilutive gold facility with OCIM, it has allowed the Company to complete a new and more robust agreement,” said CEO Edward Kelly in a release.
Repayment will take the form of gold ounces, with a total of 4,181 ounces of gold to be provided in 16 equal monthly payments, each of which is slated to be 261.3 ounces. The first payment to OCIM is to be made on November 4. The initial funds received saw $1.35 million utilized for the repayment of a secured debenture, while $4.6 million has been allocated to purchase additional mill feed.
“This new Facility will significantly increase working capital by US$4.6 million and provide Inca One the ability to fill a significant portion of our unused mill capacity and could enable the Company to process between 175 and 225 TPD.”Edward Kelly, CEO
Inca One Gold last traded at $0.375 on the TSX Venture.
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