Ximen Mining secures term sheet to finance Kenville gold mine

Ximen Mining Corp (CVE:XIM) (FRA:1XMA) (OTCQB:XXMMF) said it has signed an indicative term sheet with an arm’s-length Swiss-based metals trading company to provide US$5 million of financing in the form of a secured gold loan for the planned development of a 1,200-meters decline and extraction of a 10,000-tonne bulk sample at its Kenville gold mine property in British Columbia, Canada. 

The company said the contemplated loan will have a maturity date fixed at 330 days following the date of the advance to Ximen. It will be repayable on maturity by crediting a metals account designated by the lender by a specific number of ounces of gold, to be calculated at a discount to the spot price, with the number of ounces subject to adjustment on the closing date, depending on the then-current LBMA AM closing gold price. The loan is also to be secured by a first ranking general security agreement over the company’s assets. 

READ: Ximen Mining acquires Running Wolf gold property in Cranbrook, British Columbia

Ximen added that the loan transaction is forecast to close by April 30, subject to due diligence investigations being completed. The company added that once relevant permits and financing are secured for Kenville, it will be able to proceed immediately with mine development having acquired the necessary underground mining equipment.

“This non-dilutive financing is an important milestone as we continue moving forward on the development of the Kenville Gold Mine towards production. Following months of discussions, we are extremely pleased to have come to terms with a sophisticated firm that understands our industry and is providing us with the final stepping stone to satisfy our cash flow requirements,” Ximen president and chief executive Christopher R. Anderson said in a statement.

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