Nicaragua's La India Gold Mine Completes $27 Million Loan Drawdown

en.Wedoany.com Reported - On September 28, Metals Exploration disclosed that its wholly-owned subsidiary La India Gold drew down the final $6.8 million equipment loan provided by Banco de America Central on September 23, completing the full drawdown of the $27 million equipment financing facility. The loan was used to fund the purchase of the initial Caterpillar mining fleet for the La India gold mine, has a term of 5 years, and matures on August 17, 2031. Following the drawdown, the company's cash balance stood at £25.8 million, equivalent to approximately $34.5 million.

The facility includes a 12-month principal grace period, during which interest is paid monthly, followed by equal repayments of principal and interest over 48 months. The loan bears interest at a floating rate of 6-month Term SOFR plus 3.15 percentage points, repriced quarterly, with an initial annual interest rate of 7% and a minimum rate of 6.85% over the full term. The loan is secured by a first-priority charge over La India Gold's Caterpillar mining fleet, with a corporate guarantee provided by Metals Exploration.

The La India project is located in Nicaragua, construction is currently more than 50% complete, and first gold production is planned for December 2026. The project is designed to produce an average of approximately 145,000 ounces of gold per year, with a mine life of more than 12 years and initial capital expenditure of approximately $177 million. Metals Exploration acquired 100% interest in the project following its acquisition of Condor Gold in January 2025.

As of September 28, installation of the project's process plant conveyors has been completed, the steel structure of the grinding building has been finished, the oxygen plant installation has been completed, the SAG mill ends, trunnions and shell have been lifted into their final positions, and the ball mill girth gear is being prepared for installation. Installation of the ring plates for the CIL leach tanks has been completed, installation of the top structures and grates is underway, and liner placement has begun at the tailings storage facility.

Regarding mining equipment, as of August, 10 CAT 777 hundred-tonne-class mining trucks and 2 CAT 6020 hydraulic excavators were in operation at the project site, while another 5 mining trucks, a third excavator, 2 wheel loaders and other equipment were in transit or in the manufacturing stage. The company had previously paid $30.5 million for this mining equipment, with an additional $700,000 outstanding, and the related fleet investment is not included in the La India project construction budget.