OceanaGold Phils. Inc, a subsidiary of Australian mining company OceanGold Corp., announced Monday that the company recently received credit approvals from a group of banks for a $220 million three-year credit facility.

 

In a statement, the company said that the loan will be used to pay for convertible bonds maturing in December 2012 worth Australian $57.8 million and in December 2013 valued at A$110 million. The remaining $50 million provides further working capital. 

 

Also, OceanaGold reported that its high-grade copper gold Didipio Project in Nueva Vizcaya is fully financed and on track for commissioning in the fourth quarter of 2012.

 

As of 30 June, $161 million of the total project capital cost had been spent, with a further $24 million committed in contracts. Cash on hand was $73 million.

 

While total project capital has increased to $220 million from the initial $185 million pricing in June 2011, construction is more than 70 percent complete. 

 

Recruitment for Didipio’s permanent operations team and operations readiness plans are also well advanced. OceanaGold claims that the project's 1600 workers at the site are 98 percent Filipino.

 

Though construction is not fully complete, mining at the Didipio has commenced on schedule this July. These mining operations are in preparation for commissioning during 2012’s fourth quarter and to build ore stockpiles for production in 2013.

 

Operations right after commissioning are expected to build momentum to 2.5 metric tons per annum by the start of commercial operations in 2013. This, in turn, is expected to eventually build up to five mtpa. — DVM, GMA News