LONDON (Alliance News) - Crusader Resources Ltd said it intends to submit its final application for an installation permit to the Brazilian government for its Borborema gold project in November.
In a separate announcement, the Brazil-focused mineral exploration company also said it has raised USD1.0 million through the subscription and issue of secured convertible notes.
The proceeds from the convertible notes will be used to fund the company's immediate working capital requirements.
The convertible notes will have an amount of USD100,000 each and carry an interest rate of 8% per annum. They will mature one year from the date of issue.
In a third announcement on Monday, Crusader Resources said its nominated adviser Smith & Williamson Corporate Finance has resigned with immediate effect. Crusader has one month to appoint a new nominated adviser or its listing on London's AIM will be cancelled.
Crusader Resources was granted a pre-licence for Borborema from the Rio Grande do Norte State Government Environmental Department in April but the project's processing plant design required for the permit is not yet completed, but was expected to be finalised by the end of October.
Brazilian engineering company Ausenco do Brasil Engenharia Ltda is working on the print designs.
The miner said the final items required for the permit are being finalised before the November application.
Crusader Resources noted it already has an environmental licence, and subject to the company's on-going construction financing, once the installation permit has been received, Crusader will be in a position to commence construction of Borborema.
The miner said metallurgical test work carried indicated the project ore can achieve a 2.0 million tonnes per annum throughput rate at grind sizes of 80% of the material at grinding sizes of 106 micrometres.
Crusader this would be "sufficient" to ensure targeted gold recoveries.
"The company has advanced the work streams significantly on the Borborema gold project bankable feasibility study and remains confident that the results will confirm our view that this will result in a positive decision to commence construction and allow us to finalise our project finance discussions," said Marcus Engelbrecht, managing director.
Engelbrecht added: "In tandem, the company is also looking at opportunities to develop our 100% owned Juruena gold project and to progress the project up the value curve and to realise value. There has been an increasing and significant level of interest across the Alta Floresta mineral belt and in particular, our 100% owned Juruena gold project."
Shares in Crusader Resources are suspended from trading but last closed at 1.375 pence each.
At the request of Crusader, the company's shares were suspended on October 1 pending clarification of its financial position.
Engelbrecht added: "I am pleased with the interest received for the convertible notes which will provide the needed working capital for the company as we advance further funding initiatives to lift the current trading suspension."