Emerald Resources, Sprott enter credit agreement
PHNOM PENH (The Phnom Penh Post/ANN) - Australia-listed Emerald Resources NL has entered into an investment committee approved term sheet with Sprott Private Resource Lending II LP to provide a $60 million facility that will be used to finance the Okvau Gold Project in Mondulkiri.
Australia-listed Emerald Resources NL has entered into an investment
committee approved term sheet with Sprott Private Resource Lending II LP
to provide a $60 million facility that will be used to finance the
Okvau Gold Project in Mondulkiri.
Emerald Resources NL, the parent company of Renaissance Minerals
(Cambodia) Ltd, expects to extract gold from the Okvau Gold Project in
the second quarter of 2021.
According to a company announcement on Wednesday, Sprott’s
financing of the Okvau Gold Project will combine the strong development
credentials of the Emerald team with the financial strength of the
respected Sprott group.
The Okvau debt facility has also provided access to a $100 million
acquisition and development facility to fund future development and
Financial close and first draw down remains subject to
customary conditions precedent which includes execution of all facility
documentation and perfection of security which is expected to be
completed by the end of the first financial quarter.
Emerald Resources managing director Morgan Hart said the credit
agreement is the culmination of a thorough and collaborative process by
the teams at both Emerald and Sprott.
“We’d also like to thank the Cambodian Ministry of Mines and Energy
and its Minister H.E. Suy Sem for their transparent and collaborative
efforts, conducted in a professional manner to fully licence the Okvau
Gold Project for development.
“With the execution of the agreement and a clear path for financing,
we look forward to achieving our goal of becoming the first modern
large-scale Cambodian gold producer in Q2 2021,” he said.
Department of Mineral Resources director-general Yos Monirath told
The Post in February that after more than a decade of on-site
exploration in Mondulkiri province, the company announced it will begin
extracting gold next year.
He said that the gold will be exported and processed into 99.99 per cent pure gold for sale on the market.