Kentor Gold has received a committed letter of offer for a $50m debt facility from the Macquarie Bank, which will be used to construct the Andash gold-copper project in the Kyrgyz Republic.

The debt facility and the firm’s $65m equity, raised at the end of last year, will more than cover the estimated $96m capital cost for developing Andash project.

The debt will be repayable over three years with an interest margin of 4.75% over LIBOR.

The project is expected to produce 70,000oz of gold and 7,400t of copper for an initial six years with strong extension and expansion potential.

The construction of the project is expected to be completed in 12 months from the date of site access.