GoGold Resources (GGD.TO) has entered into a definitive agreement with Red Kite in connection to the $35M funding for its Parral silver tailings project which is fully permitted.
Red Kite will issue a $30M loan at LIBOR + 6.5% which is repayable in equall installments during three years. Red Kite also agreed to acquire 4.7M shares of GoGold at $1.10/share for a $5M equity injection.
GoGold should produce approximately 1.2 million ounces of silver per year at a C1 cash cost of $6.48/oz.
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Disclosure: The author holds no position in GoGold Resources. Please see our disclaimer for current positions.
