Klondex Mines Ltd. said Wednesday it has drawn $5 million from a $20 million gold-backed debt facility to fund continued exploration and development at its 100 percent-owned Fire Creek gold property in the Battle Mountain-Eureka Trend of northern Nevada.
Klondex secured the gold-backed line of credit in April from Waterton Global Value LP. The latest tranche follows the initial U.S. $10 million funding in April and leaves $5 million, conditioned on the achievement of development milestones, available under the facility.
We have an extremely active exploration and development program moving forward at Fire Creek, said CEO Blane Wilson. Five drill rigs are now executing our surface exploration program, and our underground decline is progressing well under the very capable teams from Small Mines Development.
Facility borrowings are to be repaid in monthly bullion installments from Klondex's anticipated gold recovery at Fire Creek priced at a 20 percent discount to gold's spot price.