ASX gold share Calidus Resources’ share price has yet to react to the company’s latest financing announcement. We look at the details…
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The Calidus Resources Ltd (ASX: CAI) share price is flat in morning trade. At the time of writing, shares in Calidus Resources are trading for 42 cents, up 5%.
Below, we take a look at the ASX gold share’s latest project finance announcement.
What did Calidus Resources report?
The Calidus share price remains flat in morning trade after the company reported final agreements have been executed with Macquarie Bank for a $110 million project loan. Calidus initially provided the terms of the loan to the market on 30 November last year.
The ASX gold miner also reported its Power Purchase Agreement (PPA) with Zenith Energy Limited has been completed. That agreement will see Zenith provide 8 megawatts (MW) of power for the company’s Warrawoona Gold Project. This will occur via a “10.74MW installed capacity high-efficiency LNG fuelled reciprocating generation facility”. Zenith will also provide an 8 MW backup diesel generator.
Calidus also highlighted that the deal with Zenith is part of its continuing efforts to introduce renewable energy sources at its Warrawoona project.
Commenting on the twin agreements, Calidus’ managing director, Dave Reeves said:
We are very pleased to have executed final debt financing agreements with Macquarie. The timing of which coincides with GR Engineering mobilising to site to begin civil works at Warrawoona and the execution of the PPA with Zenith Energy.
Calidus is fully funded and focused on successfully developing the Warrawoona Gold Project and becoming a leading independent gold producer, with first production on schedule for early 2022.
Argonaut was the financial advisor while Herbert Smith Freehills was the legal advisor for the debt financing agreement with Macquarie.
Share price snapshot
Over the past 12 months, the Calidus Resources share price has outperformed the broader All Ordinaries Index (ASX: XAO). Calidus shares have gained 74% over the past full year while the All Ords are up 34% at the same time.
So far, 2021 hasn’t been as kind to Calidus shareholders, with shares down 20% year-to-date.
At the current share price of 40 cents per share, Calidus has a market cap of $135 million.
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*Returns as of February 15th 2021
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Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.