Credit Suisse has agreed to provide US$15 million to help fast track the production ramp-up at Kingsrose Mining’s Talang Santo mine. The mine is within the company’s Way Linggo project in south Sumatra. It is awaiting approval from the Indonesian Mines Department for full mining activities to recommence.
The funds will be paid in two tranches to Kingsrose subsidiary PT Natarang Mining (NM) which operates the Way Linggo project.
Kingsrose managing director Chris Start says the funding is a significant vote of confidence in the project. “This funding will allow us to ramp up production at Talang Santo as quickly as possible and ensure that the project generates maximum income for both Kingsrose shareholders and for the people of Lampung province.”
He says some of the funds will go towards drilling to further define and expand the Talang Santo resource as well as testing nearby targets.
PT NM secured a similar funding agreement from Credit Suisse in 2010, totalling Aus$13million to repay loans.
The Indonesian Mines Department has given the company a list of the steps necessary for the mine to resume operations which were suspended after a fatality at the site in September 2012. These conditions include an environmental impact study, a second forestry permit, an emergency evacuation plan and the hiring of a geotechnical engineer, which PT NM says will be achieved soon.
Talang Santo is the second mine being developed at the Way Linggo project, discovered in 2011. The most recent resource estimate totals 287,489 ounces of gold and 894,481 ounces of silver.
Kingsrose has received community support and approval from the local mayor for the second forestry permit, as well as receiving a recommendation from the Governor of Lampung province. The final approval will be given by the Forestry Minister.