Capital Limited (LON:CAPD) has updated investors on the progress under its contracts at the Sukari Gold Mine in Egypt.
The company landed ‘transformative’ new contracts with Centamin for the Sukari mine last year, with the AIM-quoted contractor signed up for waste mining and drilling services. It required the company to expand its equipment inventory and has therefore needed investment.
Capital Limited has confirmed that proceeds from its share placing in December have allowed payments on major capital items and payments have been progressed for all long lead items – including 17 CAT 785 dump trucks, seven blast hole drill rigs, three excavators, dozers, graders and water trucks.
READ: Capital Limited lands transformative Sukari deal
An initial fleet of trucks arrived in December and further trucks arrived recently.
The company also noted that it has made substantial progress on several of the debt facilities that were contemplated last month.
It has executed a US$2.6mln vendor finance facility with Epiroc, drawn down remaining tranches under its facility with Macquarie and expects to use US$8.5mln of vendor financing with Sandvik.
Talks are meanwhile advancing with lenders for facilities that would provide balance sheet flexibility for further growth, now that the capital needs for the Sukari operation are satisfied
In a statement, Capital Limited said: “We are very pleased to confirm the completion of key intended debt financing facilities for the Sukari contracts which have enabled the payments for all major equipment purchases to be finalised.
“Together with the proceeds from the recent successful equity raise, the crystallisation of these debt facilities positions us strongly for this contract.
“It is also pleasing to note that site activity is also progressing well with the continued expansion of our extensive on-site facilities, further asset arrivals and the recruitment of key personnel to prepare for the commencement of preliminary mining activity in late Q1 as planned.’