Gascoyne Resources Ltd. entered into flat forward gold sales contracts for 164,000 ounces of gold produced from its preproduction-stage Dalgaranga property in Western Australia, where initial production is anticipated in the second quarter of 2018.
The contracts were executed with the Commonwealth Bank of Australia and the National Australia Bank at a delivery price of A$1,712/oz, in accordance with an agreement earlier in the month under which the two banks will provide the company with a A$60 million project loan facility for the Dalgaranga development.
Gascoyne said in its Dec. 15 release that the first gold delivery under the long-term hedge is due in September 2018 and the last delivery date is June 2022.
The hedge will replace a short-term hedge facility the company entered in November, under which the company forward sold 82,000 ounces at A$1,660/oz. A related A$5 million cash security has been returned to the company.