Infinito Awards Project Financing Mandate to BNP Paribasadmin
Infinito Gold Ltd. announce that it has signed an engagement letter under which it has given BNP Paribas an exclusive mandate to act as lead arranger of a $US 66 million debt financing facility to complete the construction and start-up of Infinito Gold’s 100% owned Crucitas Gold Mine Project located in north central Costa Rica. The financing is subject to BNP Paribas completing its due diligence process, which has commenced, and settlement of the terms of the facility.
Infinito Gold is a gold exploration and development company based in Calgary, Alberta, in the process of transitioning from junior explorer to gold producer. The development of the Crucitas Gold Mine Project is underway in Costa Rica with gold production scheduled to begin in late 2009. This signifies a major step forward for Infinito Gold and its shareholders.
“We are pleased to be working with the BNP Paribas team to bring the Crucitas Gold Mine Project into production,” said John Morgan, President and CEO of Infinito Gold. Steven Dean, the Chairman of Infinito Gold, said “The combination of the proven financial capability of BNP Paribas coupled with the quality project team currently at work in Costa Rica gives us great confidence that this project will be developed in an environmentally and socially responsible manner to the benefit of our shareholders, employees and local stakeholders.”
On July 17, 2008 the Company announced the results of a feasibility study on the Crucitas Gold Mine Project prepared by Micon International Limited. The project economics set forth in this study are considered by the Company to be robust due to a number of factors including a low strip ratio of 0.6 tonnes of waste per tonne of ore, high gold recoveries averaging over 92 percent and a relatively low initial capital cost of $US 66.2 million. The mine operating costs are estimated to be below US$ 350 per ounce, net of silver credits. The feasibility study may be found with the Company’s filings at www.sedar.com. The forgoing scientific and technical information has been prepared under the supervision of Ian Ward P. Eng., a qualified person under NI 43-101, who is independent of the Company.
Construction has been underway since June of this year and several buildings have been completed on site along with access road improvements, bridge installation and site preparation. Most of the large mill components have been delivered to the site and the project is on schedule and on budget for completion in late 2009.
The Company announced on August 29, 2008 that it had completed a non-brokered private placement for an aggregate of $CDN 18 million with Exploram Enterprises Ltd. and Auro Investments Ltd. which funds are anticipated to supply the required funding for mine construction until the financing with BNP Paribas can be completed.
BNPP is an AA+ rated world class financial institution with a full range of product and distribution capabilities, including a dedicated group specializing in providing project finance services to the energy, metals and mining industries. A market leader, BNP Paribas ranked #1 global Mandated Lead Arranger in project finance by Thomson Financial in 2007.