Australian resource company KBL Mining has secured a two-year term credit facility of $10m from private investor Capri Trading.
Proceeds from the credit are to be used to fund its operations at Mineral Hill Mine, in New South Wales besides repayment of $3m bridge loan facility.
The company is also keen to commence the construction of its gold plant that is expected to enable higher recoveries of gold from underground ore at Pearse open cut mine.
Capri’s credit facility will also help in furthering the progress at its Sorby Hills Silver Lead project, the company stated.
KBL is not expected to pay interest during the term of the loan, but it is liable pay $11.3m if repayment is done within the first year of securing the loan.
At the end of the two-year term KBL will make a cumulative payment of $12.6m.
The company, meanwhile, is seeking mining on the Red Terror lodes over the next three months to leverage the superior copper and gold recoveries witnessed during the operations undertaken in 2012.