Alecto is “now focusing on completing the last leg of the financing plan..”,it said.

Alecto Minerals PLC (LON:ALO) is making progress on securing funding for its Matala project, which will be Zambia’s first major standalone gold mine.

It was originally envisaged that Chinese financing could be wrapped up by the end of September but that timeline has slipped, not least due to Presidential elections in Zambia in August.

In May, Alecto said Xiamen XGMA International Trade Company Ltd had confirmed that huge Chinese State-owned insurer and credit export group Sinosure would provide risk cover but that needed Ministerial support in Zambia and was delayed by the election.

On September 28, Alecto received confirmation of  Sinosure’s cover subject to a local Zambian institution holding the security on behalf of the lender.

Alecto is “now focusing on completing the last leg of the financing plan, which is to reach agreement with local Zambian institutions for the provision of an on-lending facility and additional security in order to facilitate the flow of funds from China”, it said.

The mine is expected to be commissioned in 2017.

Alecto chief executive Mark Jones said: “The company, and our partners, are very excited about what will be a true Zambian gold mining success story, and we are fully committed to ensuring that it happens.

“Due to our size, satisfying potential financiers of the merits of taking on project risk has not been without its challenges, and progress has been slower than we would have wished.

“However, our commitment to the process is undimmed and we continue to believe that bringing Matala into production is the best way to realise value for shareholders.” – (Proactive Investors)

 

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