AlectoMinerals Plc said April 13 that it has secured vendor financing forits Matala gold project in Zambia after the feasibility study deliveredpositive results.
Yantai Xinhai Machinery Co. Ltd. and PenMin (Pty) Ltd. haveagreed to enter into a proposed design, build and operate contract for Matala.
The feasibility study envisages a 400,000-tonne-per-annumoxide and transitional open pit operation with a mine life of about four yearsand eight months at a gold price of US$1,200 per ounce, with exploration upsideand underground potential.
The project is estimated to have a net present value,discounted at 8%, of US$28.6 million, and a 52% internal rate of return.
The estimated capital cost for plant and infrastructure isUS$14.4 million. The net project cash flow is expected to total US$43.3 million.
Alecto purchased the Matala and Dunrobin gold mines in Zambia –both part of the bigger Luiri Hill project -- in late 2015 and said it would paya total of up to £1.5 million for the assets.