SUM 0.00% 1.2¢ sumatra copper & gold plc

News: Sumatra Copper & Gold arranging funding for Sumatra gold project

  1. Sumatra Copper & Gold (ASX:SUM) has mandated Nomura Singapore Limited to arrange a funding package for the development of its Tembang Gold Project in southern Sumatra, Indonesia.

    This will include higher levels of debt funding, equity compensation and a gold hedging facility compared to a previous financing proposal.

    The company has also signed a variation to its Convertible Loan Facility Agreement with major shareholder Provident Minerals Pte Ltd to increase the Convertible Loan Facility by US$500,000 to US$6,100,000.

    This will be drawn down for working capital through to anticipated funding of the project.

    Tembang is the subject of a Definitive Feasibility Study for the production of 2.1 million tonnes at 2.8 grams per tonne gold and 33g/t silver for a total of 169,000 ounces of recovered gold and 1.8 million ounces of recovered silver over 5 years.

    Annual production is estimated at 33,000 ounces gold and 345,000 ounces silver at a forecast C1 cash operating cost of US$470 per ounce and all-in-sustaining costs of US$745 per ounce.

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