Argentina Gold Project Secures Financing

Minera IRL will receive up to $80m funding for the Don Nicolas gold project in Argentina’s Santa Cruz province from investment fund Compania Inversora en Minas (Ciminas), the Latin American gold mining company says. The package breaks down into a $35m bridge loan and $45m equity investment. Ciminas takes a 45% equity stake in Minera IRL Argentina subsidiary MIRL Patagonia. Minera comes away with 51% ownership, with 4% going to the arrangers of the transaction, LatinFinance understands. Buenos Aires Advisors advised Minera, according to Minera. The equity investment Ciminas has made gives it a combination of common and preferred shares in Minera Patagonia. The preferred shares have preferential rights in terms of early repayment and conversion rates. The $80m is expected to be enough to allow the company to develop the mine and begin production and generate positive operating capital.