Comstock Mining secures finance for infrastructure programmes

31 July 2012 (Last Updated July 31st, 2012 18:30)

US-based Comstock Mining will secure $10m from two financing partners to fund capital expenditure programmes across its operations.

US-based Comstock Mining will secure $10m from two financing partners to fund capital expenditure programmes across its operations.

The company will receive a loan commitment up to $5m from Caterpillar Financial Services and another $5m revolving credit facility from Auramet Trading, which will act as the gold agent.

Comstock Mining president and CEO Corrado De Gasperis said that the working capital financings are consistent with the company's business plans as it becomes Nevada's newest gold and silver miner.

"These financing packages not only accelerate the transition into sales from production, but they represent two outstanding, industry-leading production partners who are enabling and supporting the growth and development of the Comstock," said De Gasperis.

Subject to the terms of the revolving credit facility, the company will deliver 3,720 ounces of gold from February 2013 to July 2013.

The company has drawn the first $2m of the $5m 30-month facility secured from Caterpillar Financial Services to finance the Cat mobile equipment fleet.

Funds will also be utilised to undertake infrastructure upgrades at the company's Crushing facility and Merrill Crowe facility in the US.

Comstock Mining has commenced mining operations at the mine and has also commissioned its new Crushing facility, while the Merrill Crowe facility will be commissioned and hauling ore will start in the first week of August.