EganStreet Resources Ltd (ASX:EGA) has taken another step towards development of the Rothsay Gold Project after receiving indicative funding proposals to underpin debt funding.
In conjunction with financial adviser PCF Capital Group, EganStreet has completed initial assessments of several indicative and non-binding offers received from a range of financing groups.
These offers provide financing solutions ranging up to $35 million of conventional debt alternatives and include attractive commercial terms consistent with a project financing of this nature.
EganStreet managing director Marc Ducler said the multiple indicative offers from a range of reputable financiers reflected the project’s robust nature and marked another step towards development.
Confident of securing funding package
“Based on the indicative terms received, we are confident of securing an attractive project funding package which will underpin development of the project, ensuring we remain on track to join the ranks of gold producers in 2019.”
EganStreet anticipates moving forward quickly with formal appointment of a preferred financier to secure development funding for Rothsay, which is in WA’s Mid-West.
READ: Egan Street Resources high-grade results likely to add to 401,000 ounce gold bounty at Rothsay
Last week, the company received high-grade results from drilling which indicate the potential to increase the 401,000-ounce gold resource.
Assays from a 16-hole diamond drilling program confirm that high-grade mineralisation extends to the south on Woodley’s Shear, which hosts the resource.
Ongoing exploration of targets near the resource, including drilling, is also returning encouraging results.