Financing in place for Nixon Fork

For its Nixon Fork gold project in Alaska, Consolidated Nevada Goldfields (TSE) has completed US$1.5 million in bridge financing as a 60-day cash loan from Citibank Australia.

The loan will be used partly to acquire and mobilize equipment. Previously, the company received a commitment from Internationale Nederlanden Capital (ING) to provide US$21.5 million in credit facilities for the project. Due diligence for the ING financing is in progress, and management anticipates closure by late March.

The company intends to pay down to Citibank Australia both its pre-existing $2.4-million loan and the $1.5-million bridge loan out of proceeds from the ING financing.

Construction has begun on drifts and declines for Nixon Fork, and production is planned for September. Proven and probable reserves stand at 94,000 tons grading 1.42 oz. per ton.