Frontier Mining gets second US$4 mln loan tranche from HSBC
Feb 28. Proactive Investors
by Jamie Ashcroft
Frontier Mining has received the second US$4 million loan payment to develop the Benkala copper project in Kazakhstan.
The company has two key projects, Benkala and Koskuduk. It hopes to bring the Benkala copper mine into production later this year, meanwhile the Koskuduk ‘test-stage’ gold mine achieved its first gold pour in July 2010.
Frontier has been focused on converting Benkala’s Soviet-era resource into western standards, while simultaneously fast-tracking the mine into production. Recently it updated the project’s total JORC resources to 1.56 million tonnes of contained copper, with 183,000 tonnes from oxide ore and 1.37 million tonnes from sulphide ore.
To help fund the mine development the company arranged a US$15 loan facility with HSBC Bank back in November 2010. The loan is tied to certain development milestones and the US$4 million tranche was received upfront in November.
Frontier said that the money is being spent on equipment for the mine development project.
Frontier Mining Ltd is a mineral exploration and development Company focussed on gold and copper deposits in the Republic of Kazakhstan. Through its subsidiaries and affiliates, Frontier locates, evaluates, acquires, explores and develops mineral properties. Frontier currently operates two licenses in Kazakhstan, Naimanjal (100% owned) and Benkala (50% owned). Naimanjal operations currently consist of five projects; a producing gold mine, a test stage gold production project, a potential copper porphyry deposit with associated gold and molybdenum, and copper/gold prospects along a 25km trend including both VMS and porphyry types. Benkala is a copper-molybdenum-gold deposit located in north-western Kazakhstan, within the Urals gold/copper ore belt.