Capital costs for the Buffalo Gulch gold mine in Idaho are being provided to a subsidiary of Bema Gold (TSE) through a gold loan from New York- based Sharps Pixley, a unit of Kleinwort Benson of London, England. The loan of 7,479 oz. gold was made to Idaho Gold Corp., owned 85% by Bema and 15% by Glamis Gold (TSE). Valued at US$3 million, the loan is secured by a mortgage against Idaho Gold’s Champagne heap leach gold mine in Idaho and a guarantee by Bema Gold.
The gold loan is monetized at US$400 per oz. and will be repaid in six equal installments from April 1, 1991, to July 1, 1992. It bears interest at 1.76% above the current gold borrowing rate.
Bema Gold says funds will be used to build a modest-sized heap leach gold mine at Buffalo Gulch and for general corporate purposes.
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