Aureus Mining Inc. (AUE) will try to raise debt before looking at other financing including the possibility of a venture partner for its New Liberty gold mine in Liberia.
“Debt will be the primary driver, and then we’ll look at the balance with equity, convertibles, royalties or bringing in a strategic partner,” Chief Executive Officer David Reading said. “There are people who will take a strategic position in a project without taking ownership. That’s an option.”
About two-thirds of the “ball park” cost of $130 million could be raised in debt, he said. Construction of the mine will take about 18 months and may start in the first quarter. The company is seeking to produce about an annual 120,000 ounces of gold in the first four years at a cost of about $650 an ounce.
“We want to get it financed as quickly as we can and commence construction,” Reading said.
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