Perth-based Regis Resources (ASX: RRL) has executed formal documentation with Newmont Mining Finance as agreed under the heads of agreement announced last year.
Following the announcement, shares in the company jumped 5c, or 7.4%, to 73c during the afternoon trade.
Subject to obtaining shareholder approval of this documentation, Regis’ position as a guarantor of a loan owing from a third party to Newmont and the restructure of the securities held by Newmont over Regis’ assets in connection with that guarantee is now resolved.
Finalisation of these matters has enabled the Company to finalise funding for the development of the Duketon Gold Project and settles a potential liability of up to $24 million.
The agreement with Newmont and the issue of the note and options to Newmont are subject to Regis shareholders’ approval.
In addition, the Company has signed formal documentation with Macquarie Bank for project loan, gold hedging and performance bond facilities for the Duketon Gold Project in Western Australia.