Monday, 10th April 2006 (3123 views)

Allied Gold today secured a AU$34 million loan through RMB Resources that fills the financing gap for the company's latest Papua New Guinean (PNG) project.

The offshore Simberi oxide gold venture in the south Pacific is one of the Australian company's largest undertakings and represents one of the few undeveloped gold mining prospects in the PNG area.

This latest drive to raise capital for the project follows the recent release of 243 million shares in Allied Gold to be traded on stock markets in Oceania and Europe, which generated more than AU$50 million.

The company's managing director, Wayne Loxton, said: "Establishment of the RMB loan is another milestone in the development of our project and in conjunction with the equity funds already secured, now completes the financial package."

Mr Loxton was quick to reassure shareholders that the loan would not impact other company interests:

"Exploration properties not forming part of the Simberi oxide gold project are not specifically encumbered, which is important as it enables the company to continue to explore and develop other project areas in our island tenements," he declared.

Development at the Simberi venture is already underway, with infrastructure for mining already established and pre-development earthworks having commenced several months ago.

 

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