To fund the ongoing construction of the Buritica gold-silver project in Colombia, Continental Gold Inc. secured a US$175 million financing package backed by Newmont Mining Corp. and Triple Flag Mining Finance Ltd.

The deal includes an aggregate US$75 million in unsecured 5-year and 2-month debentures with a 5% interest rate. This includes Newmont committing to a US$50 million debenture which could increase its Continental Gold shareholding to 28% from about 20% if fully converted.

Debenture holders will have the option to convert into Continental Gold shares at C$3.00 apiece, while the company could choose to buy back all the debentures under certain conditions.

Continental Gold also obtained an agreement from Triple Flag for a US$100 million gold-silver stream on planned production, covering 2.1% of gold output and all Buritica's silver production.

The subordinated and secured stream has payments for gold and silver set at 10% and 5% of spot prices, respectively. Continental Gold can buy back the gold portion of the stream for US$80 million until Dec. 31, 2021.

The financing package comes as the company builds Buritica, one of the larger gold mine developments in the hands of a junior, with construction expected to be completed in the first half of 2020.

Continental Gold recently outlined a resource update topping 10 million gold equivalent ounces in a deposit that is largely characterized by narrow, high-grade veins.