Metals Exploration (AIM:MTL) has secured $27 million (C$38 million) in equipment financing as its La India gold project in Nicaragua closes in on first production by year-end.
The company has already drawn $20.2 million from the five-year Banco de America Central facility, replenishing cash used to buy its Caterpillar mining fleet as construction advances towards a December target.
Metals Exploration said it will use the remaining $6.8 million as additional equipment arrives in Nicaragua.
“Construction at La India continues to make strong progress, with installation of the process plant advancing across multiple fronts,” CEO Darren Bowden said. “The ball mill is in its final position, the SAG mill is ready to follow, and the CIL tank fit-out is nearing completion.”
The financing gives Metals Exploration additional liquidity as it pushes La India towards commissioning while continuing to generate gold from its Runruno mine in the Philippines. Runruno is expected to produce near the upper end of its 40,000-48,000-oz. 2026 guidance because of higher-grade ore from the Stage 5 pit.
Build advances
Structural, mechanical, piping and electrical installation at La India is about 50% complete, the company said. The grinding building is structurally finished and the ball mill is in its final position, while the SAG mill is being prepared to be lifted into place.
Installation of the carbon-in-leach tank rings has reached 88% completion, with the leach tanks about 80% complete and detox tanks roughly 70% finished. All 10 CIL agitators and both detox agitators have been assembled.
Bulk earthworks are 93% complete and civil foundations have reached 92%, while pre-stripping of the open pit is 71% finished.
Metals Exploration has stockpiled about 244,000 tonnes of ore on the run-of-mine pad ahead of commissioning.
Site infrastructure is also nearing completion. The mine and heavy mobile equipment offices are operating, the water treatment plant is finished and camp installation is about 90% complete. Industrial buildings are roughly 88% complete, while the explosives magazine is awaiting an operating permit.
Construction of the tailings storage facility has reached about 60%. A 2-MW grid connection to Nicaragua’s national electricity transmission company ENATREL has been energized and is available for operations and commissioning. The main sub-station remains scheduled for completion in December.
Shipping risks
Disruption to international shipping linked to the conflict in Iran has delayed some imported equipment and materials, creating a potential scheduling risk as La India approaches commissioning, Metals Exploration said.
The company noted it has managed the impact within the overall construction program so far and is assessing alternative logistics arrangements to reduce the risk of further delays.
The financing provides additional flexibility against those pressures. The facility carries an initial annual interest rate of 7%, with a 6.85% floor, and matures on Aug. 17, 2031.
Metals Exploration receives a 12-month grace period on principal before repaying the loan over 48 equal monthly instalments plus interest.
The company has paid $30.5 million for its CAT mining fleet, with another $700,000 due next month. The fleet investment sits outside La India’s development and construction budget.
With major plant components moving into place and mining already building an ore stockpile, Metals Exploration’s December target increasingly hinges on completing the remaining infrastructure and keeping outstanding equipment deliveries on schedule.
Be the first to comment on "Metals Exploration locks in $27M as La India first gold nears"