(Alliance News) - AltynGold PLC on Monday announced that it has secured an additional credit line from JSC Bank CenterCredit, which will be used to increase production and processing capacity at its Sekisovskoye mine.
The London-based mining, exploration and development company, which holds assets in Kazakhstan, said it had secured a USD40 million credit line from the Kazakh bank.
The loans are repayable in instalments over six and a half years with interest charges of between 3% and 7%.
The credit, along with the company's own funds, will be used to increase the production capacity of the underground mine at Sekiovskoye, Kazakhstan, and expand the capacity of the company's processing plant to 1 million tonnes of ore per year.
The company expects the total cost of the expansion of the project, which includes the reconstruction of both its processing plant and mine power supply, to be USD64 million.
AltynGold shares were up 7.9% trading at 93.20 pence per share on Monday morning in London.
Chief Executive Officer Aidar Assaubayev said: "Securing the development funding at attractive terms, indicates our partners' confidence in the prospects of AltynGold. We are now in a position to implement the expansion plan towards 1mtpa production within two years in line with our strategic growth plan. Achieving this milestone will significantly increase shareholders' value and set the stage for a sustainable dividend policy."
By Harvey Dorset; harveydorset@alliancenews.com
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Altyngold (ALTN)