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Lupaka Gold Signs Letter of Intent for US$10.6 Million to Fund Invicta Mine Development and Production
Vancouver, British Columbia--(Newsfile Corp. - January 21, 2016) - Lupaka Gold Corp (TSXV: ...
About this update from Lupaka Gold Corp.
[{"type":"text","content":"Lupaka Gold Signs Letter of Intent for US$10.6 Million to Fund Invicta Mine Development and ProductionVancouver, British Columbia--(Newsfile Corp. - January 21, 2016) - Lupaka Gold Corp (TSXV: LPK) (FSE: LQP) (\"Lupaka Gold\" or the \"Company\") is pleased to announce that it has signed a non-binding Letter of Intent with Pandion Mine Finance, LLC (\"Pandion\") to fund the completion of development and subsequent production at its Invicta Gold Project (\"Invicta\"). This financing is subject to Pandion's completion of remaining due diligence within ninety days and the completion and execution of a Prepaid Forward Gold Purchase Agreement. The first tranche of US$3,600,000 will be used to complete mine development, safety and efficiency upgrades and for the upgrade and completion of access roads. The first tranche will allow the Company to begin operations at 150 tonnes per day (\"tpd\") utilizing local toll processing plants.Subject to certain milestones being achieved, by the first anniversary, a second tranche of US$7,000,000 will be made available to allow Lupaka Gold to complete the expansion of its mine production to 350 tpd and the construction and commissioning of its own processing facility. Such a facility would be located much closer to Invicta than existing toll processors. This new Company owned facility is forecast to realize significant transport and processing cost-savings. Gordon Ellis, President and CEO commented, \"We are very pleased with this funding package in that it has very favourable characteristics including that it is non-dilutive to shareholders, has a fixed term and can be paid out at any time. We look forward to closing this financing transaction as soon as possible\". About Pandion Mine Finance, LLCPandion Mine Finance, LLC is a mining-focused investment firm backed by MKS PAMP Group and Ospraie Management, LLC that provides flexible financing solutions to developing mining companies.About Red Cloud Mining Capital Inc.In connection with the announced financing, Red Cloud Mining Capital Inc. (\"Red Cloud\") acted as Lupaka Gold's strategic advisor. Red Cloud is a 'new concept' capital markets strategy firm. Red Cloud uses its network and extensive experience in mining to help companies identify alternative sources of capital and quality actionable growth opportunities.About Lupaka GoldLupaka Gol...