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Gold/Mining/Energy : GEOMAQUE -- Ignore unavailable to you. Want to Upgrade?

To: dean poets who wrote (196)	10/28/2000 12:57:08 PM
From: Braincramp	Read Replies (1) \| Respond to of 260

Geomaque financing for Vueltas del Rio construction Geomaque Explorations Ltd GEO Shares issued 45,659,689 2000-03-31 close $0.25 Monday Apr 3 2000 News Release Mr. Sean Stokes reports Geomaque Explorations has signed an agreement with Resource Capital Fund II LP to provide debt financing for construction of the Vueltas del Rio gold project in Honduras. Life-of-mine cash costs at Vueltas del Rio are projected to average $169 per ounce and gold production at an annual rate of 60,000 ounces is expected to begin in the fourth quarter of 2000. The majority of Vueltas del Rio construction is complete. Phase One of the leach pad and the process ponds are constructed, the crusher/stacker/agglomerator is on site and the ADR plant has been fabricated. The remaining construction capital requirement is estimated at $3-million. Resource Capital Fund II L.P., managed by Resource Capital Management LLC, an investment company associated with the Rothchild family, has agreed to provide a $3.5-million, 30-month bridging loan facility. No gold hedging is required, however a $1-million hedging line is provided in connection with this facility. Closing, which is subject to regulatory approval and legal documentation, is expected within 60 days. The loan facility has an interest rate of 5 per cent per year and a prepayment option at any time prior to expiry on Sept. 30, 2002, is provided. Fees payable to RCF are an establishment fee of one million common share purchase warrants exercisable at 28 cents until Sept. 30, 2002; and $0.825-million on each of Sept. 30, 2001, and Sept. 30, 2002, payable in cash or common shares at RCF's option. Should RCF elect to receive common shares, the price will be based on the 20-day average of the market price at that time. RCF is entitled to nominate a representative to the board of directors for the period of the loan. "Vueltas del Rio is an excellent project with significant upside and with this financing we're poised to quickly finish construction," said John Paterson, president and chief executive office. "With the low cash costs expected, the start of production at Vueltas later this year will significantly enhance cash flow and enable Geomaque to realize its growth plans." Operations at the San Francisco mine progressed well during the first quarter of 2000. A total of one million tonnes of ore, 11 per cent over budget, at a grade of 1.26 grams per tonne were mined and crushed during the quarter, resulting in a record of 40,600 ounces of gold loaded on the heap. Gold production before final settlements was 17,000 ounces. This compares with production of 14,225 ounces in the fourth quarter of 1999. "Under the new mine plan, San Francisco is currently producing over 250 ounces of gold a day, and given the grade and tonnes we're putting on the pad, we anticipate reporting strong production numbers again in the second quarter," said Mr. Paterson. The company anticipates minimum gold production of 50,000 ounces from the San Francisco mine in 2000. ( old url (better for printing)