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Calidus Resources (ASX:CAI) - Managing Director, Dave Reeves
Managing Director, Dave Reeves
Source: The Pick Magazine [YouTube]
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  • Calidus Resources (CAI) has executed final agreements for $110 million in project loan facilities from Macquarie Bank
  • The facilities will fund construction of a plant at the company’s Warrawoona Gold Project in Western Australia
  • Calidus Resources has also executed a power purchase agreement with Zenith Energy
  • Under the agreement, Zenith Energy will provide eight megawatts of power demand to the Warrawoona Project
  • Calidus Resources is up five per cent and trading at 42 cents per share

Calidus Resources (CAI) has executed final agreements for $110 million in project loan facilities from Macquarie Bank.

The company first secured the debt facility with Macquarie after signing an initial agreement in late November 2020. The facilities will help to fund construction of a plant at Calidus’ Warrawoona Gold Project in Western Australia.

The company will have a little over three years to repay the loan, once repayments start in June 2022. However, Calidus has the option to repay the loan early without incurring any penalties.

As part of the agreement with Macquarie, Calidus will hedge roughly a quarter of forecast production, equal to about 105,000 ounces of gold. The company also agreed that security will be provided through a fixed, floating charge over the assets of its subsidiary, Keras Gold. 

Calidus Resources’ Managing Director, Dave Reeves, commented on how pleased the company is to have executed final debt financing agreements with Macquarie.

“Calidus is fully funded and focused on successfully developing the Warrawoona Gold Project and becoming a leading independent gold producer, with first production on schedule for early 2022,” he added.

In related news, Calidus Resources has also completed execution of a power purchase agreement (PPA) with Zenith Energy. Under the agreement, Zenith will provide eight megawatts of power demand to the Warrawoona Project.

“The timing […] coincides with GR Engineering mobilising to site to begin civil works at Warrawoona and the execution of the PPA with Zenith Energy,” David said.

The power will be provided through a 10.74-megawatt installed capacity high-efficiency LNG-fuelled reciprocating generation facility, along with an eight-megawatt installed capacity backup diesel generation facility.

Calidus and Zenith are continuing to collaborate on eventually introducing renewable energy solutions to the Warrawoona Project in the future.

Calidus Resources is up five per cent, trading at 42 cents per share at 11:00 am AEST.

CAI by the numbers
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