Friday, May 25, 2012 -
Gold miner Kryso Resources said on Friday its largest shareholder is going to put up $93.5 million to expand the Pakrut gold mine in Tajikistan.
China Nonferrous Metals International Mining, which holds a 26 percent stake in Kryso, will issue the funds in loans and exercise share warrants that will generate another $24 million.
The financing will be used to finance the design, construct, operate and administer the mine, which Kryso wholly owns, and provide the company with general working capital, Kryso said in a statement.
“We are delighted to have secured the debt financing requirement for the Pakrut project given the current challenging debt markets,” Craig Brown, Kryso’s managing director said.
“Mine construction is already progressing well and, with debt financing now confirmed, we are on track to commence production in the second half of 2013.”
Pakrut has an estimated gold resource of around 5 million ounces. The mine is located around seven miles northeast of the capital city Dushanbe and within the fabulously endowed Tien Shan gold belt.
Production is expected to start in 2014.