Gold News

Central African Gold expands debt facility, eyes expansion

A growing gold mining firm has claimed a major investment coup in its bid to expand its Ghana operations.

Central African Gold claimed that its Ghanaian unit had secured a $10 million extension to an existing debt facility that is already $15 million strong.

Claiming to have mined 23,000 tons in November at grades ranging between 2.5 and 3.0 grams per ton gold, the group exceeded its internal forecasts and, with the debt facility extension now secured, it can now set its sights on further expansion.

Central Africa Gold said that it looking to significantly expand tonnage in December, with the Bibiani mine, 250km north-west of Accra, a key target for enhanced mining capacity.

Chief executive Greg Hunter said: "This momentum we believe will be carried on into 2008, allowing us to achieve our stated objective of producing just in excess of 100,000 ounces on an annualised basis from Bibiani."

The group's long term objective involves establishing itself as a leading mid-tier African gold producer, with high recent gold prices giving many mining firms reason to believe they can up their status.


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