Northern Vertex Mining Corp. [NEE-TSXV, NHVCF-OTC] said Thursday it has secured non-dilutive financings from key partners in anticipation of a production start at its 100%-owned Moss gold mine in western Arizona.
The company said it has drawn the fourth and final US $5 million tranche from Sprott Resource Lending LP and signed a flexible US $6 million working capital facility with Greenstone Resources II L.P. that is available in up to four tranches.
“This is an exciting time for our shareholders,’’ said Northern Vertex CEO Kenneth Berry. “We are on the cusp of a production at the Moss Mine and our partners at both Sprott and Greenstone are standing with us to ensure we have prudent levels of both financial resources and corporate flexibility to carry us through to positive cash flow,’’ Berry said. “The transition from construction to commissioning is underway, our operating team is in place, and our cash balance is strong. We are delighted to be America’s next producing gold mine.’’
Northern Vertex is a development stage company that is poised to become a fully-fledged gold producer. The company recently put its flagship Moss gold-silver project on the fast track towards a planned production start in the fourth quarter of 2017.
By deploying low-cost heap leaching recovery methods, Northern Vertex is expecting the Moss project to produce 45,000 ounces of gold equivalent during the first five years of production. Annual cash flow is projected at US $24 million and will be used to fund expansion and acquisitions.
With a forecast IRR (after-tax) of 48%, the project benefits from robust economics. A projected all-in sustaining cash cost of US $603/oz should make the Moss project highly profitable at a gold price of US $1,267.68/oz (December 21, 2017), a scenario that offers investors protection in the event of a fall in the price of gold.
Ken Berry is an experienced financier who has outlined a strategy that aims to leverage the company’s strong balance sheet, production, cash flow, and financial partnerships to elevate Nothern Vertex to mid-tier gold producer status. He plans to achieve that goal via a process of consolidation using the Moss mine as a springboard.
Aside from an experienced management team, Northern Vertex has forged strong strategic partnerships with key financial backers, including United Kingdom-based Greenstone Resources LP, and Sprott Resource Lending, a division of the Toronto investment and fund management firm Sprott Inc.
Northern Vertex shares were unchanged at 51 cents on the TSX Venture Exchange in afternoon trading, Thursday.