Tuesday, 6 July 2010 9:39 AM

Allied Secures AU$35M IFC Loan for Solomon Islands Gold Mine

Gold developer Allied Gold has signed a AU$35 million loan agreement with the International Finance Corporation to underpin the AU$150 million redevelopment of its Gold Ridge mine, in the Solomon Islands.

Allied Gold said in a statement that the loan would provide additional financial flexibility, allowing the company to conserve cash it would have otherwise applied to the project redevelopment, or consider increasing regional exploration activities.

The refurbishment and redevelopment activities at the 120,000 oz/year Gold Ridge mine were currently ongoing, with key items ordered and commissioning activities expected to start in the March quarter next year.

Allied Gold signed a AU$64 million lump-sum engineering procurement and construction contract for the refurbishment of the project with GR Engineering Services, in May.

The Gold Ridge project was acquired in late 2009 from TSX-listed Australian Solomon Gold. The current plan is for 943,000 oz to be recovered over a seven to eight year life-of-mine.

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