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Toronto-based explorer Metallica Resources (TSX: MR) has completed an Cdn$85mn (US$64mn) equity financing, the company announced.
Net proceeds will be used to develop the company's Cerro San Pedro gold-silver project in Mexico, pay off remaining debt obligations to Reno-based Glamis Gold (NYSE: GLG) arising from Metallica's purchase of Glamis' 50% stake in San Pedro, and for "general corporate purposes."
Construction of the Cerro San Pedro project was postponed until the first quarter of next year, with production due to begin by end-2004. Cerro San Pedro is slated to produce 90,500oz/y gold and 2.1Moz/y silver - or some 120,000oz/y gold-equivalent - over its estimated 8.3-year working life. Capex is expected to be US$28.2mn, and operating costs are estimated at US$160/oz gold produced after silver credits.
Cerro San Pedro will be Metallica's first operating mine.
The company also owns the El Morro porphyry copper-gold project in Chile, which includes the La Fortuna deposit.