Bardoc agrees gold concentrate sale to trader

Bardoc Gold has agreed a binding offtake deal for the 50% of the gold it expects to produce at its namesake project north of Kalgoorlie that is refractory (reports MiningNews).
11th December 2020
Resources Rising Stars

Bardoc Gold has agreed a binding offtake deal for the 50% of the gold it expects to produce at its namesake project north of Kalgoorlie that is refractory (reports MiningNews).

MRI Trading has agreed a sales contract for a concentrate to be produced at Bardoc, with the other 50% of production to be in a conventional gold dore form.

Terms of the offtake weren't released but Bardoc suggested the deal "compares extremely favourably to the PFS".

Bardoc's PFS earlier this year outlined a 135,000 ounce per annum, seven-year project with a net present value of A$332 million, an internal rate of return of 32%, and pre-production capital of $142.4 million.

A gold price of $2100/oz was used for the ASX company's modelling.

A definitive feasibility study is due next quarter from the open cut and underground mining flagged development.

Bardoc said the offtake agreement would provide a "solid foundation for its project debt funding strategy".

Bardoc had $29.4 million of cash reserves at the start of the current quarter, having raised $24 million in July by issuing new shares priced at 7.8c each.

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