News was released this morning for Andean American Mining (TSX.V-AAG) (FWB-AQN) regarding the completion of the Optimized Feasibility Study for the Invicta Project. John Huguet states: “These improvements strengthen an already financially robust model and move us closer to completion of our major financing for Invicta. There is still much to learn about the geology at Invicta. Major structural reviews will begin in June 2010. At this time, we are tracing on an aggressive schedule for third quarter funding given the amount of job quality work still in front of us….”
Financial Analysis Highlights include average annual production to be 97,931 oz gold and average annual gold equivalent production of 160,857 oz. 5 year AVG annual free cash flow of $65,273,398 US, operating costs of $28.31 US/tonne and LOM (Life of Mine) cash cost per oz gold on a by-product basis $126.91 US, on a co-product basis $451.38 US. Production rates will be 3,000 tpd in Year 1, 4,000 tpd in Year 2 and 5,000 tpd in Years 3,4 and 5. Commercial production is anticipated in Q3 2011.
Andean American Mining (TSX.V-AAG) has announced an agreement with a prominent metals trader to further advance the Invicta project. The agreement is to provide a Bridge Facility in exchange for the right to buy gold and silver production from the Invicta Mine. The Facility is for US $8 million and should close June 1, 2010 or earlier, the tenor is for 12 months from closing and will have the security of a Deed of Trust registered against the properties of Invicta Mining Corp. There are upfront fees of 5.5% flat as well as an option to purchase 2 million shares for a term of 2 years from closing with 1 million exercisable at C$0.55 and one million exercisable at C$0.65 per share. “…another step towards completing all our finance requirements including acceleration of our community agreements.” states Chairman and CEO, John Huguet.
Great news today with Andean American. Trafigura has taken an equity investment in the amount of $3,000,000 and has long term off-take agreements for the sale of the Invicta project’s copper, lead and zinc concentrates. The Company and Trafigura also intend to negotiate a project finance, cost overrun and working capital facility for up to US $15 million. They have a conditional option to acquire up to an additional 16% of Andean American, and if exercised, Trafigura could enter into a technical services agreement which will assist Andean American in putting Invicta into production including negotiation of a project finance facility.
See the news release for all details.
March 24/10 – Andean American announced a $3 million non-brokered private placement at $0.40. These funds will be used to advance the gold Invicta project and general working capital.
Andean American is awaiting an updated Feasibility Study to reflect the increased resource estimate. Barclays Capital and WestLB AG have been engaged as joint lead arrangers for debt financing of US $68 million to move the gold-copper-silver Invicta project into production.