Angel Mining in ‘advanced discussions’ for £67m funds

MINING company Angus and Ross is in ‘advanced discussions’ to secure £67m funding after also clinching an additional £3m enabling it to press ahead with the world’s first underground gold processing plant in the Arctic.

The Kirkbymoorside-based company’s Angel Mining division is solely focused on Greenland and aims to source semi-precious metals such as gold, silver, zinc and lead.

Cyrus Capital Partners has agreed to advance the £3m ($4.5m) for ‘general working capital purposes, to fund operations at Nalunaq and to provide the company with time to implement a longer term financing solution’.

In a financial update, Angel Mining states: “The company is also in advanced discussions with another party in relation to a significant new financing facility, pursuant to which it is anticipated that the third party will commit to a debt facility of $100m (£67m) which will include associated equity subscription rights. 

“Any arrangement with the third party will be subject to shareholder approval in a general meeting and a further announcement will be made shortly.”

In May, the company announced that it had defaulted on its financing agreements with FBC – which subsequently advanced a further £1.3m ($2m) to help.

The new funding from Cyrus takes the total amount of money it owes to FBC to £14 ($21m) plus accrued interest.

Chief executive Nicholas Hall said Angel Mining now has access to sufficient capital to allow it to move into full production and achieve positive cash flow

He said:  “The continued support of Cyrus and FBC is very much appreciated as it should enable us to achieve full-scale production at Nalunaq resulting in positive operating cash flow for the first time in our history. 

“We regret the delays in the commencement of production at Nalunaq but we have risen to the challenge of constructing the world’s first underground gold processing plant incorporating cyanide leaching which will give us advantages in both operational efficiency and environmental controls.

“I remain confident that our negotiations with the Third Party will be concluded successfully and that we will have the funding to meet our obligations to repay FBC.”

If the £67m funding is provided, it will be used to fund the development of the Black Angel lead and zinc mine. 

Angel Mining plans to complete the construction of the upper terminal for a cable car this year and also to take the cables across the ice and then hang them during the winter. 

The directors want to have this cable car- which is an essential component of its operations – running by this time next year.