Friday, 25th January 2008 (1924 views)

Exploration and mining firm Cambridge Mineral Resources (CMR) has secured $15 million (£7.58 million) in financing to develop three gold mine projects in Colombia, the company has announced.

The funding is in the form of pre-payment agreement, which forwards capital CMR in return for the company making gold available over a period of around 30 months after each mine starts production.

The first instalment of $5.5 million will be used to bring CMR's Quintana mine into production. Work is expected to start in mid-2008, with total output predicted to be 16,500 ounces per annum.

Quintana is located within the Frontino Gold Belt, which accounts for around 45 per cent of Colombia's annual gold production.

Further instalments worth a total of $9.5 million will be used to fund feasibility studies at two other mines CMR has under option.

CMR managing director Colin Andrew said: "These funds will enable us to bring our first three Colombian mines into production over the next 18 months, which is in line with our previously stated target of achieving annual gold production of 100,000 ounces."

In addition to its Colombian projects, CMR also currently operates in Bulgaria, Spain, Peru and Serbia.

 

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