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Tuesday, 6th January 2009 (1480 views)

PanAust has announced that it has secured a new $8.1 million (£5.5 million) working facility for its gold mine project in Laos.

The loan will be used to fund projects, exploration and expansion plans at the Phu Kham copper-gold operation.

Based in Brisbane, the company is issuing 18 million options to three banks (ANZ Bank, National Australia Bank and Standard Chartered Bank) as part of the deal.

Gary Stafford, PanAust managing director, said: "It is encouraging that financial institutions are prepared to lend new money or extend existing facilities to companies with cost competitive and quality mining operations."

Mr Stafford has predicted that the firm will be able to refinance the facility significantly before its maturity date of 2010.

PanAust also saw its share price rise in Sydney trading following a decision by Goldman Sachs JBWere to roll $80 million of debt over to March 2010.

 

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