Australia-listed Emerald Resources NL has entered into an investment committee approved term sheet with Sprott Private Resource Lending II LP to provide a $60 million facility that will be used to finance the Okvau Gold Project in Mondulkiri.
Emerald Resources NL, the parent company of Renaissance Minerals (Cambodia) Ltd, expects to extract gold from the Okvau Gold Project in the second quarter of 2021.
According to a company announcement on Wednesday, Sprott’s financing of the Okvau Gold Project will combine the strong development credentials of the Emerald team with the financial strength of the respected Sprott group.
The Okvau debt facility has also provided access to a $100 million acquisition and development facility to fund future development and acquisition opportunities.
Financial close and first draw down remains subject to customary conditions precedent which includes execution of all facility documentation and perfection of security which is expected to be completed by the end of the first financial quarter.
Emerald Resources managing director Morgan Hart said the credit agreement is the culmination of a thorough and collaborative process by the teams at both Emerald and Sprott.
“We’d also like to thank the Cambodian Ministry of Mines and Energy and its Minister H.E. Suy Sem for their transparent and collaborative efforts, conducted in a professional manner to fully licence the Okvau Gold Project for development.
“With the execution of the agreement and a clear path for financing, we look forward to achieving our goal of becoming the first modern large-scale Cambodian gold producer in Q2 2021,” he said.
Department of Mineral Resources director-general Yos Monirath told The Post in February that after more than a decade of on-site exploration in Mondulkiri province, the company announced it will begin extracting gold next year.
He said that the gold will be exported and processed into 99.99 per cent pure gold for sale on the market.