Capricorn Metals Ltd. secured A$107 million funding commitment for construction at its Karlawinda gold project in Western Australia.

Macquarie Bank committed to provide funding comprising a senior project finance facility of A$81 million, a bank guarantee facility of A$19 million, and a working capital facility of A$7 million. The facilities have a 5.5-year tenor with a sculpted repayment schedule over the term.

Draw down is conditional on finalization of material project agreements, formal facility agreements, implementation of a hedging program and minimum project equity contribution.

The hedging facility consists of mandatory hedging of 250,000 ounces over the loan term and a discretionary hedging facility, according to the Dec. 13 release.

In June, an optimization study for Karlawinda estimated a pretax net present value, discounted at 8%, of A$243 million, an internal rate of return of 36.4% and a 2.5-year payback period.