Dacian Gold Ltd. on Dec. 21 said it has secured a A$150 million debt facility to fund the development of its Mount Morgans gold project in Western Australia.
Earlier in December, the ASX-listed company's plan to raise A$150 million through a A$100 million rights issue and A$50 million via a private placement was largely snubbed by investors. Dacian raised only A$26.5 million through the private placement of 10.6 million shares.
The five-year project debt facility comes with a fixed schedule of repayments starting in Sept. 2018 through to December 2021. The facility can be repaid early at any time and can remain undrawn without penalties.
In addition, the Department of Mines and Petroleum in Western Australia approved the project's Native Vegetation Clearing Permit, allowing the start of earthworks ahead of infrastructure development.
The company expects to receive mining and works approval for Mount Morgans in the near term.
"With this facility in place, the project is on track to start construction early next year, with first production scheduled for the March quarter, 2018," Dacian Gold's Executive Chairman Rohan Williams said.