Update: Guyana Goldfields to invest US$238M in Aurora Gold Project

[www.inewsguyana.com] – The Board of Directors of Guyana Gold Fields Inc has approved a US$238M expenditure for the Aurora Gold Project to reach commercial production.

The announcement was made on Wednesday morning (December 11) during a presentation held by the Company at the International Conference Center.

The Company has executed a Heads of Agreement and Term Sheet, documenting the principal terms and conditions with joint partners – Sedgman Limited and Grana y Montero for the full engineering, procurement and construction of the initial processing facility and power plan at the work site.

It was noted that the proposed contract will be at a cost not exceeding US$137M. Construction is expected to last some 18 months, with commissioning of the mill in the first quarter of 2015.

Chief Executive Officer of the Company, Scott Caldwell told the gathering that the second half of the financing for the project with the International Finance Corporation (IFC) of the World Bank Group, which will be leading a senior debt facility in the amount of US$165M.

“It’s a very rigorous process but when we get through that process, we’re confident that we’re going to get the funding from the IFC. The IFC is a big believer in the project and it’s very supportive of Guyana as a whole,” Caldwell said.

Additionally, Minister of Natural Resources and the Environment, Robert Persaud underscored that investments such as this will bring tremendous benefits to the people of Guyana.

Given the fact that a large gold mine will now be established, Persaud assured stakeholders that the Company would have received the necessary permits to mine and operate within the national laws.

As it relates to the issue of environment, Persaud made it clear that the Environmental Protect Agency (EPA) and the Guyana Geology and Mines Commission (GGMC) will be upgrading its capability to monitor the area.

Guyana Goldfields Inc is a Canadian based Company, focused on the exploration and development of gold deposits in Guyana. The mine plan for the Aurora project is designed to produce 3.29 million ounces of gold, averaging 194,000 ounces per year, over an initial 17 year mine life.