Mining begins at True Gold's Karma mine

TSX-listed gold junior True Gold Mining has entered into an equipment refinancing facility with precious metal merchant Auramet International for US$10 million.

“This fixed cost equipment loan gives us flexibility to draw funds that can be used for non-project spending, including exploration,” says True Gold president and CEO Christian Milau.

“There are no costs for repaying the loan early and it provides an added start-up contingency while retaining the upside leverage to gold. We remain on schedule and budget at the Karma mine, in Burkina Faso, with first gold pour anticipated in March 2016,” he added.

The term of the Auramet deal is January 2016 to June 30, 2017, with an early repayment option, with interest set at LIBOR + 9.75%.

The deal includes a refined commitment of 200 000 gold ounces at fixed $5/ounce discount to the spot gold price. The number of ounces at the fixed $5 per ounce discount to the gold price will be prorated to the total amount of the $10 million drawn.

An amount of $6 million is available for drawdown on closing and the remaining $4 million upon announcement of commercial production of the Karma mine.

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