Fire River Gold secures loan to fund US gold mine expansion
Canadian-based Fire River Gold Corp has secured a $12.75m credit facility from Waterton Global Value to fund its expansion plan for its Nixon Fork mine in Alaska, US.
The loan will also be used to repay existing debt and to fund the working capital needs of the company and its subsidiary Mystery Creek Resources.
Fire River Gold Corp president Richard Goodwin said "The completion of this financing provides us with sufficient capital to extinguish our current debt, increase our bonding and to further develop the Nixon Fork mine."
Waterton Global portfolio manager Cheryl Brandon said the company is looking forward to working with Fire River Gold to provide the additional capital required for commissioning.
"In addition, we have provided Fire River access to our in-house technical team to further expand the Nixon Fork Gold mining operations in Alaska," said Brandon.
"The Waterton Global facility will allow Fire River to carry out further underground development, commission the CIL circuit to improve gold recoveries, and execute their production growth strategy."
As part of the transaction, the company has agreed to sell the gold and silver produced from the Nixon Fork mine to Waterton, pursuant to a gold and silver supply agreement.