
Emerald Resources secures up to US$400M debt facility
- Emerald Resources signed a mandate for a US$200 million debt facility to US$400 million to fund global project acquisitions.
- The company holds circa $500 million in cash, fully funding its existing Dingo Range and Memot Project developments.
- The funding facility directly supports Emerald's strategic target to become a 600,000- to 800,000-ounce-per-annum gold producer.
Emerald Resources (ASX:EMR) signed a mandate with Sprott Resource Lending Corp. and Macquarie Bank for a US$200 million corporate acquisition facility that can scale to US$400 million via an accordion option to fund new global gold acquisitions.
The five-year facility features a 36-month availability period, supplementing the company's existing cash reserves of approximately $500 million allocated for internal project construction.
Emerald’s Managing Director, Morgan Hart, commented, “We are entering an exciting stage in Emerald’s remarkable growth story as we embark on two new developments, both in Australia and Cambodia, over the next two years.”
The company stated that the facility provides low-cost capital restricted to potential new acquisitions and ongoing project development costs.
Emerald recently ordered two 8,000 kW Metso SAG mills and a crushing circuit for circa $30 million to advance the Dingo Range and Memot gold projects.
The arrangement underpins the company's strategy to acquire global gold assets to scale operations to production targets.
Following the announcement, the Emerald Resources NL share price was up at $6.79.
Emerald previously financed the Okvau Gold Mine with Sprott, which has produced over 520,000 ounces of gold.
