GUYSBOROUGH – Anaconda Mining Inc. announced Tuesday that it has entered into a $5 million term loan from the Royal Bank of Canada (RBC) to help finance its work on the Goldboro Gold Project. The loan will give Anaconda “enhanced financial flexibility and allow it to complete all pre-construction activity at its 100 per cent-owned Goldboro Gold Project..without further equity financing,” the company said in a news release.
Anaconda expects to finalize its feasibility study for Goldboro this year and complete all work required to obtain mining permits to be shovel-ready in early 2020. The RBC financing was arranged with the support of Export Development Canada (EDC), which has issued a performance guarantee over half of the principal amount.
"The financial commitment from RBC and EDC demonstrates their confidence in the Anaconda management team, the continued cash flow generation at the Point Rousse Project, and our overall ability to advance our growth plans in Atlantic Canada,” Dustin Angelo, Anaconda CEO, said. The loan “now enables us to execute on our business plan in an accelerated, focused manner, with our debt service obligations easily funded from our mine operations. (The financing) combined with our continued free cash flow generation from the Point Rousse Project, will enable us to advance the Goldboro Gold Project to a construction-decision stage in early 2020, at an exceptionally low cost of capital and without any dilution to our shareholders."
At the end of January 2019, Anaconda completed the mining phase of a10,000-tonne bulk sample from its Goldboro property. Access to the mine has been secured and site closure activities for the bulk sample are scheduled to be completed in the spring.
Anaconda also operates the Point Rousse Project located in the Baie Verte Mining District in Newfoundland.