Bea Mountain Mining signs finance agreements to gain HME for mine in Liberia

18 October 2017 (Last Updated October 26th, 2017 07:30)

Avesoro Resources' wholly owned subsidiary Bea Mountain Mining (BMMC) has signed equipment finance facility agreements with Mapa İnşaat ve Ticaret to secure funding for the purchase of heavy mining equipment (HME).

Avesoro Resources’ wholly owned subsidiary Bea Mountain Mining (BMMC) has signed equipment finance facility agreements with Mapa İnşaat ve Ticaret to secure funding for the purchase of heavy mining equipment (HME).

The agreements are worth an aggregate value of around $6.1m and comes after the company announced an updated mineral resource and reserve estimate for the New Liberty gold mine earlier this month.

Procurement of the HME is required for operations in connection with the new mine plan for New Liberty, which is located in Grand Cape Mount County in the north-western area of Liberia.

Mapa is an affiliate of Avesoro and its purchasing power was given as a reason for the agreement.

“The company expects to ramp-up to a quarterly gold production rate of 36,000oz during next year.”

Upon completion of the expansion of the mining fleet, the company expects to ramp-up to a quarterly gold production rate of 36,000oz during next year.

With the funding, the company intends to purchase two Sandvik 1500i drill rigs, one Komatsu PC1250 excavator and four Komatsu HD785 haul trucks.

The HME is expected to be delivered to New Liberty later this month.

BMMC also expects to sign further similar agreements with Mapa to aid its purchase of additional new HMEs, including three Komatsu PC1250 excavators, eight Komatsu HD785 haul trucks and some auxiliary equipment.

The delivery of additional HME to New Liberty is scheduled to take place throughout the fourth quarter of this year and the first quarter of 2018.