The Reminder is making its archives back to 2003 available on our website. Please note that, due to technical limitations, archive articles are presented without the usual formatting.
Jonathon Naylor Editor Proposed financing of US$23 million could fund the potential restart of the Puffy Lake gold mine near Sherridon. That's the word from the property's owner, Auriga Gold Corp., which has entered into a non-binding term sheet with a private investor with regard to a gold prepay agreement. The proposed US$23 million financing would pay for the refurbishment and development of the Puffy Lake mine and mill as outlined in a preliminary economic assessment filed earlier this year, Auriga said. It replaces an indicative term sheet for a US$10-million loan announced in April, the company said. 'We are very pleased to have a facility that we expect will fully fund the (project) to production,' said Richard Sutcliffe, president and CEO of Auriga, in a news release. 'This proposed credit facility is significant in that it will provide a non-dilutive financing option for the project and enable the company to retain certain flexibility on metals payments and pricing of the majority of gold production.' See 'Subject...' on pg. 9 Continued from pg. 3 The financing is to be repaid by delivery of predetermined gold amounts averaging less than 20 per cent of the scheduled gold production for a period of 36 months, following a six-month grace period, Auriga said. The balance of production remains unallocated and Auriga retains the flexibility to sell such unallocated production as it sees fit, including pricing production at the then prevailing market rates. The financing arrangement is subject to completion of technical and legal due diligence, definitive documentation and receipt of regulatory approvals. Neither the TSX Venture Exchange nor its regulation services provider accepts responsibility for the adequacy or accuracy of information supplied by Auriga.
