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NEWS
Funding in for Warrawoona
by Dominic Piper
his year looms as a big one for a slew of gold juniors who “We haven’t had the sugar hit of exploration success, but we
Tplan to head into development over the next 18 months. can deliver by getting into production. That is the lowest risk
Last year was marked by bulging cashflow numbers from value addition option this company has and so that has been
producers and huge price gains from explorers. In between, the focus.”
developers were left to prove their credentials without the The commitment of Macquarie to project finance was a big
advantages of a rising cash margin or breakout exploration tick of approval for Calidus with the subsequent capital raising
success. quickly running oversubscribed.
For one such developer, Calidus Resources Ltd, that meant
hitting the milestones it had set itself in 2019, which managing
director Dave Reeves says has been achieved, including
approvals, DFS and debt finance.
“Fifteen months ago, we said we would have EPA and Ministerial
sign-off; put out the DFS and start early works. All of those have
been achieved,” Reeves told GMJ.
The market has certainly recognised Calidus’ achievements.
The company’s shares were up 150% through 2020 and on
November 30, it announced a $110 million financing facility with
Macquarie Bank, paving the way for project development to
begin.
A $30 million capital raising followed in December, meaning
Calidus is now fully funded for the $120 million development of
its Warrawoona gold project in the Pilbara, Western Australia.
Reeves said the share price momentum had come as a result of
the market’s realisation about progress on Warrawoona.
“Investors like it when you keep delivering on what you say
you would,” he said. “People are starting to realise we will be
heading into that wide cash margin environment the established
producers are in, yet we are still trading at one times EV-EBITDA
Exploration opportunities still abound in the wider
compared to three to five times for the producers.
Warrawoona project area
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