(Kitco News) - On Monday, Marathon Gold (TSX: MOZ) announced the execution of a credit-approved commitment letter with Caterpillar Financial Services ("Cat Financial") for equipment lease financing related to the development and operation of the Valentine Gold Project located in central Newfoundland.
According to the company's statement, the commitment letter announced today with Cat Financial contemplates US$81 million of equipment leasing for Caterpillar trucks, excavators, graders, loaders, and dozers, for the purpose of loading, hauling, road maintenance, waste dump maintenance and primary pit support for the Project.
Marathon added that the Cat Financial lease will be available to the company upon release of the Project from its federal Environment Assessment process, review of the Project's updated Feasibility Study, satisfaction of a cost to complete certification, and other customary conditions.
President and CEO Matt Manson commented, "We are very happy to be announcing today our equipment leasing commitment with Cat Financial, another significant milestone in our project financing arrangements for the Valentine Gold Project. This agreement will provide financing for the Project's mobile mining equipment through project development and into the first several years of mining operations at an attractive overall cost of capital for Marathon."
Marathon Gold is a Toronto based gold company advancing its 100%-owned Valentine Gold Project located in the central region of Newfoundland and Labrador, one of the top mining jurisdictions in the world.
The company said that when completed, the Valentine Gold Project will be the largest gold mine in Atlantic Canada and a significant contributor to the economy of Newfoundland and Labrador.
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