Wednesday, 16 April 2014

Mexico's Guerrero Gold Belt - Torex $375m Debt Financing & Osisko Spinco Exploration

Going to show some Gold projects can secure debt finance, subject to final due diligence, Torex (TXG.TO) announce$375m loans which should see them to production at El Limon in the Guerrero Gold belt in Mexico. At the end of 2012 the project's bankable feasibility saw a 24% IRR at $1276 gold. 6% of life of mine gold would be hedged, one of the issues in taking debt finance, whilst avoiding the dilution of share issue in current markets.

Interesting to note also today that as part of the current Osisko M&A battle the Osisko "Spinco" highlighted the recently secured large, 1 million Ha, Guerrero properties as a key exploration asset.......more
Objective • Discover and develop several > 5.0 M ounce Au deposits 100% controlled by Osisko 
This would be backed up by high cash and royalty streams, with potential stock valuation premiums, from the Canadian Osisko properties.
Osisko's friends Goldcorp right in the middle.

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